Which of the Following Statements Is True of Milton Friedman's

question 45

Multiple Choice

Which of the following statements is true of Milton Friedman's view of the corporate world?

• A)Friedman argues that it is not considered unethical for a corporation to just deliver the profits of the company to the society rather than delivering it to its investors.
• B)Friedman's position illustrates that an organization has a social responsibility that goes beyond serving the interests of their stockholders.
• C)Friedman's theory that a company no longer requires senior executives to be accountable to the board of directors has been a crucial turning point in the business world.
• D)Friedman argues that, as an employee of the corporation, a manager has an ethical obligation to fulfill his role in delivering on the expectations of his employers.

---

Definitions:

Direct Method

A way of preparing a cash flow statement where actual cash inflows and outflows from operational activities are listed directly.

Operating Activities

Aspects of a business related to its core operations, including production, sales, and delivery of its products and services, as reflected in cash flows within the operating section of the cash flow statement.

Cash Dividends

Distributions of earnings from a company to its stockholders, typically in the form of profit sharing.

Direct Method

An approach to preparing the cash flow statement that involves reporting major classes of gross cash receipts and payments.