Rehman Is a Firm Believer in Milton Friedman's View of a Firm's

question 1

Multiple Choice

Rehman is a firm believer in Milton Friedman's view of a firm's social obligations.With which of the following statements is Rehman most likely to agree?

• A) Businesses can use their resources to create profit as long as they do so within the rules of the game.
• B) Firms should not go beyond their economic responsibility to increase profits.
• C) Firms should define value creation more narrowly in terms of financial performance.
• D) Businesses should engage in open and free competition without deception or fraud, only as long as their competitors do so.

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Definitions:

Annual Return

The percentage change in investment value from one year to the next, including any dividends or interest, indicating the investment’s gain or loss.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Dual-Class Shares

A corporate structure with two or more classes of stock, each with differing voting rights, dividends, or other attributes.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company’s profits through dividends.