Which of the Following Is True Regarding the Efficiency Perspective

question 19

Multiple Choice

Which of the following is true regarding the efficiency perspective of social responsibility,according to Milton Friedman?

• A) The welfare of the community is the firm's responsibility.
• B) Managers who are owners must act in the best interests of society and stakeholders.
• C) Managers should maximize profits for the shareholders in the business.
• D) Firms have obligations not only to shareholders but also to society.

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Definitions:

Roth Retirement Plan

A type of retirement savings account that allows for tax-free withdrawals in retirement, with contributions made with after-tax dollars.

Higher Tax Rate

A tax bracket imposing a greater percentage of taxation on individuals, corporations, or particular transactions.

Tax Deductible

Expenses that can be subtracted from taxable income, reducing the total amount of tax owed.

Roth Retirement Plan

A retirement plan allowing individuals to contribute after-tax dollars, with tax-free withdrawals in retirement.