Who Said the Following: "There Is One and Only One

question 277

Multiple Choice

Who said the following: "There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game,which is to say,engages in open and free competition without deception or fraud"?

• A) Federal Reserve Chairman Ben Bernanke
• B) Nobel Laureate Paul Krugman
• C) President Barack Obama
• D) Nobel Laureate Milton Friedman
• E) President Ronald Reagan

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Definitions:

Internal Rate of Return (IRR)

The interest rate that results in a net present value of zero for all cash flows associated with a specific project.

Net Present Value (NPV)

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time. It is used to assess the profitability of an investment.

Weighted Average Cost of Capital (WACC)

This metric calculates a firm's cost of capital, considering the proportionate costs of each component of the capital structure.

Internal Rate of Return (IRR)

The discount rate at which the net present value of all cash flows (positive and negative) from a project or investment equals zero.