According to Milton Friedman in "The Social Responsibility of Business

question 27

Multiple Choice

According to Milton Friedman in "The Social Responsibility of Business Is to Increase Its Profits," the managers of a company may spend corporate money on charitable enterprises only when:

• A) They are sure that doing so will increase profits.
• B) They truly believe the cause to be worthy.
• C) They have expertise in the area.
• D) They have had a profitable year.

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Definitions:

Percentage Of Budget

A financial metric that represents the proportion of a specific item or category's cost in comparison to the total budget.

Price Elastic

A term related to price elasticity of demand, indicating how responsive the quantity demanded of a good or service is to a change in its price.

Product

Anything that can be offered to a market to satisfy a want or need, including goods, services, and ideas.

Income Elasticity

A measure of how the demand for a good or service changes in relation to a change in income.