Milton Friedman Argues That the Proper Ethical Duty of Business

question 41

Multiple Choice

Milton Friedman argues that the proper ethical duty of business is to:

• A) Maximize profits
• B) Benefit society
• C) Integrate business into society
• D) Advocate for minority rights
• E) Impose taxes and spend the proceeds

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Definitions:

Ownership

The state or fact of exclusive rights and control over property, which can be tangible or intangible.

Valuation Allowance

An accounting procedure that an entity might use against its deferred tax assets indicating that it is more likely than not that some portion or all of the asset will not be utilized.

Trading Investments

Assets held by a firm for the purpose of selling them in the short term to generate profit from price fluctuations.

Unrealized Gain

The increase in value of an asset that has not been sold, and thus the profit has not been realized as the asset remains part of the portfolio.