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.

---

Definitions:

Illegal Contract

A contract that is void and unenforceable because it involves activities that are against the law.

Quasi-Contract

A legal concept where a court enforces an obligation between parties as if they had entered into a contract, to prevent unjust enrichment.

Pari Delicto

A legal doctrine meaning "in equal fault," used to indicate that two or more parties are equally at fault for a wrong.

Unconscionable

Refers to an agreement or term within an agreement that is excessively unfair, oppressive, or unreasonable to one of the parties, often to the extent that it violates public policy.