Milton Friedman's Perspective Is That the Only Responsibility of a Business

question 15

Multiple Choice

Milton Friedman's perspective is that the only responsibility of a business is to

• A) provide social benefit for the messes.
• B) give jobs to the hard workers.
• C) pay taxes to keep the government operating.
• D) make money for its owners.

Apply financial calculations to real-life scenarios, such as savings, loans, and investments, using financial functions on a calculator.

Understand the impact of time value of money on long-term savings and payment plans.

Understand the concept of compound interest and its application to finance.

Calculate and analyze the selling price and yield rates of bonds.

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Definitions:

Interest Charges

This is the cost incurred for borrowing money, typically expressed as a percentage of the principal loan amount.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period, indicating its financial health.

Net Investment

The total amount spent on new capital assets, minus depreciation, indicating the actual increase in physical capital.

Incremental Basis

An approach that evaluates the additional benefits and costs of a decision by comparing the financial outcomes with or without the decision.