According to Milton Friedman, Which of the Following Is a Position

question 8

Multiple Choice

According to Milton Friedman, which of the following is a position opposing the stakeholder model of corporate social responsibility?

• A) Organizations can act effectively as moral agents for all company shareholders.
• B) The time, money, and attention diverted to social causes undermine market efficiency.
• C) It is socially responsible for companies to divert their efforts to social causes.
• D) The marketplace will ultimately determine the importance of social causes.
• E) All of these positions are in accordance with the beliefs of Milton Friedman.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for financial reporting.

Long-term Debt

Borrowings of a company not due for repayment within the next 12 months, typically in the form of loans or bonds.

Operating Segment

A component of an enterprise engaged in business activities from which it may earn revenues and incur expenses, often reported separately in financial statements.

Entity-wide Disclosures

Detailed information provided in a company's financial statements that covers aspects of the company's operations, financial results, and risks across all segments and geographical areas.