Which of the Following Statements Is True About the Friedman

question 52

Multiple Choice

Which of the following statements is true about the Friedman doctrine?

• A) Milton Friedman explicitly rejects the idea that businesses should behave in an ethical manner.
• B) According to Friedman, managers should weigh the social benefits and costs of an action before deciding whether to pursue it.
• C) The best decisions, from Friedman's perspective, are those that produce the greatest good for the greatest number of people.
• D) According to Friedman, managers of a firm should not make decisions about social investments for its stockholders.
• E) Friedman's basic position is that the only social responsibility of business is to increase profits even if that involves breaking the rules of law.

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Definitions:

Standard Markup Pricing

A pricing strategy where a fixed percentage is added to the cost of a product to set the selling price.

Perishable

Characteristic of a good or product that has a limited shelf life and can deteriorate or expire, such as food or flowers.

Specific Profit Goal

A targeted financial benchmark that a business aims to achieve within a certain period through its operations.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's production cost.