Which of the Following Is True of Friedman's Conception of a Corporation

question 13

Multiple Choice

Which of the following is true of Friedman's conception of a corporation?

• A) The corporation engages in involuntary transactions with both resource providers and customers.
• B) In an inefficient capital market, shareholders will unanimously prefer that the firm be operated to maximize its market value.
• C) The corporation is managed by shareholders who act as agents.
• D) A corporation is a voluntary association of individuals who have joined together for a mutual purpose.

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Definitions:

Discriminatory Actions

Behaviors or practices that unfairly differentiate individuals or groups based on characteristics such as race, age, gender, or disability.

Mental Illness

A broad category of conditions affecting mood, thinking, and behavior, covering disorders such as depression, anxiety disorders, schizophrenia, and bipolar disorder.

Genetically Transmitted

Relates to traits or conditions passed from parents to offspring through genes, embodying hereditary characteristics or diseases.

Government Disability

Financial assistance and support services provided by government agencies to individuals who have disabilities that inhibit their ability to work.