According to the Friedman Doctrine

question 37

Multiple Choice

According to the Friedman doctrine,

• A) ethics are nothing more than the reflection of culture.
• B) a multinational's home-country standards of ethics are inappropriate to follow in foreign countries.
• C) businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business.
• D) if a manager of a multinational sees that firms from other nations are not following environmental legislation in a host nation, that manager should not either.

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Definitions:

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, including items like utilities and materials consumed in production.

Fixed Manufacturing Overhead

Refers to the stable costs associated with producing goods, such as factory rent and salaries, which do not change regardless of production levels.

Profit-Maximizing Result

The outcome in which a firm achieves the highest possible profit given its constraints and market conditions.

Overhead Allocation

The process of distributing indirect costs to different products, services, projects, or departments within a company.