Which of the Following Represents the View of Milton Friedman

question 40

Multiple Choice

Which of the following represents the view of Milton Friedman on the social responsibility of a business?

• A) The responsibility of a business is to donate its private wealth to do good for the society which provides the resources to it.
• B) The responsibility of a business is to provide low-priced products to its consumers.
• C) The responsibility of a business is to maximize the return of the shareholder's investment by employing any measure that increases profits.
• D) The responsibility of a business is to use its resources, and engage in activities that are designed to increase its profits so long as it stays within the rules of the game.

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Definitions:

English Rule

A rule which states that the first assignee to give notice of assignment to the obligor is the party with rights to the contract.

American Rule

The American Rule is a legal principle stating that each party in a lawsuit is responsible for paying their own attorney's fees, unless specific authority granted by statute or contract allows the prevailing party to recover those fees from the loser.

Delegation of Duties

The process of assigning specific responsibilities or tasks to another individual, often within an organizational setting.

Promisee

In a third-party beneficiary contract, the party to the contract who owes something to the promisor in exchange for the promise made to the third-party beneficiary.