Milton Friedman Argues That Businesses

question 19

Multiple Choice

Milton Friedman argues that businesses:

• A)should avoid social responsibility whenever it is possible to do so.
• B)should be required to use their resources meet their social responsibilities.
• C)can only earn profits if they do so in a socially responsible manner.
• D)are justified in being socially responsible only if doing so increases the business's value.

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Definitions:

Unanimous Consent

Unanimous consent refers to an agreement or decision made with the approval of all parties involved, often used in corporate governance contexts to expedite decisions without a formal vote.

AASB 11

An Australian accounting standard that addresses the accounting for interests in joint arrangements, specifying how an entity should report its interests.

Joint Arrangement

A contractual arrangement in which the parties involved have joint control over the decision making in relation to the joint arrangement.

Joint Control

A situation in an arrangement where two or more parties have agreed to share control over the strategic financial and operating decisions of an activity.