Which One of the Following Is Not One of the Arguments

question 69

Multiple Choice

Which one of the following is not one of the arguments against social responsibility as used by economist Milton Friedman?

• A) Spending money for social responsibility is spending the stockholder's money for a general social interest.
• B) Businesses can actually do very little in terms of social responsibility.
• C) Spending money on social responsibility is acting from motives other than economic and may, in the long run, cause harm to the very society the firm is trying to help.
• D) There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.
• E) Through taking on the burden of social costs, the organization becomes less efficient, causing price increases or postponement of growth.

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Definitions:

Accountant-client Privilege

A legal privilege that keeps communications between an accountant and their client confidential, similar to attorney-client privilege.

Common Law

The body of law derived from judicial decisions and customs, as opposed to statutes or written laws enacted by legislative bodies.

Federal Law

Laws passed by the national government of the United States that apply to the entire country, encompassing statutes, regulations, and case law.

Private Securities Litigation Reform Act

A 1995 federal law that imposed several significant reforms on the process of bringing securities fraud lawsuits in order to reduce frivolous claims.