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.

---

Definitions:

Common Stock

Equity shares issued by a company giving shareholders voting rights and a residual claim on corporate earnings and assets.

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which might not reflect its market value.

Shares

Units of ownership interest in a corporation or financial asset, which provide dividends and voting rights to the shareholder.

Preferred Stock

A category of corporate ownership that ranks above common stock in both asset claims and earnings, typically accompanied by set dividend payments.