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

question 8

Multiple Choice

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

• A) Friedman argues that it would be unethical for a corporation to just deliver the profits to its investors rather than giving something back to the society.
• B) Friedman's position illustrates that an organization has a social responsibility that goes beyond serving the interests of their stockholders.
• C) Friedman stipulates that profits can be earned "with deception or fraud."
• 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.

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Definitions:

Future Interest Rates

Expected rates of interest in the future, affecting everything from loans to investments.

Abnormal Return

The difference between the actual return of an investment and the expected return based on the risk and market's overall returns.

Sales Increase

An upward movement in the quantity sold or the revenue generated from the sale of a product or service over a specific period.

Beta

A measurement of a stock's volatility compared to the overall market volatility, indicating its relative risk.