Milton Friedman's View About the Corporate Social Mission

question 28

Multiple Choice

Milton Friedman's view about the corporate social mission:

• A) acknowledges that shareholders are likely to use some of their wealth for altruistic purposes.
• B) assumes shareholders are not rational.
• C) advocates that corporations engage in philanthropic activities.
• D) applies only to U.S. corporations.

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Definitions:

Transfer

The act of moving or conveying something from one person, place, or situation to another.

Note

A note is a brief record of facts, topics, or thoughts, written down as an aid to memory.

Dishonored

A term often used in finance to describe the refusal of a bank to pay a check or draft presented against insufficient funds.

Payable

Refers to an amount of money that must be paid, typically in the context of bills or debts.