Which of the Following Statements Best Describes Friedman's View of a Firm's

question 87

Multiple Choice

Which of the following statements best describes Friedman's view of a firm's social responsibility obligation?

• A)Friedman argued firms should perform social responsibility activities because businesses are a subset of society and therefore have a significant impact on the way society exists.
• B)Friedman argued against firms' social responsibility activities because government already takes care of society.
• C)Friedman argued against businesses performing social responsibility activities because the real responsibility for management is to reach profit objectives and increase the wealth of government officials.
• D)Friedman argued against businesses performing social responsibility activities because he saw these activities as setting up a conflict of interest between actions necessary to conduct business and maximize profits versus actions focused on taking care of society's welfare.
• E)Friedman argued for social responsibility activities because these activities increase the wealth of the firm's owners.

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Definitions:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of mental health conditions and criteria for diagnosis.

Self-Indulgence

Engaging in one's desires and impulses excessively, often at the expense of others or one's own wellbeing.

Research

A methodical exploration and examination of materials and sources aimed at discovering truths and formulating new insights.

Coping Responses

Behaviors, thoughts, and emotions that individuals use to handle stressful situations and to manage the feelings that arise due to those situations.