Which of the Following Statements Best Describes Friedman's View of a Firm's

question 87

Multiple Choice

Which of the following statements best describes Friedman's view of a firm's social responsibility obligation?

• A)Friedman argued firms should perform social responsibility activities because businesses are a subset of society and therefore have a significant impact on the way society exists.
• B)Friedman argued against firms' social responsibility activities because government already takes care of society.
• C)Friedman argued against businesses performing social responsibility activities because the real responsibility for management is to reach profit objectives and increase the wealth of government officials.
• D)Friedman argued against businesses performing social responsibility activities because he saw these activities as setting up a conflict of interest between actions necessary to conduct business and maximize profits versus actions focused on taking care of society's welfare.
• E)Friedman argued for social responsibility activities because these activities increase the wealth of the firm's owners.

---

Definitions:

Process Control

The practice of monitoring and adjusting processes to ensure they meet desired outcomes efficiently and effectively.

Major Concessions

Significant compromises or allowances made during negotiations to reach an agreement.

Negotiations

The process where two or more parties discuss an issue to reach a mutually acceptable agreement or resolution.

Bargaining Zone

The range within which parties can find common ground in negotiations; the area between their respective minimum and maximum acceptable outcomes.