The Observation That "The One and Only Social Responsibility of Business

question 29

Multiple Choice

The observation that "The one and only social responsibility of business is to increase profits" can be attributed to:

• A) Kenneth Lay.
• B) William C. Ford, Jr.
• C) Milton Friedman.
• D) Immanuel Kant.

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Definitions:

Borrowing Rate

The interest rate charged by a lender to a borrower for the use of borrowed money, often expressed as an annual percentage.

ROA

Return on Assets, an indicator of how profitable a company is relative to its total assets, showing how efficient management is at using assets to generate earnings.

ROE

Return on Equity: It's a financial performance indicator that is computed by dividing the net income by the equity held by shareholders.

Equity/Debt Ratio

An economic indicator revealing the balance between shareholder equity and borrowed funds in financing company assets.