Milton Friedman argues that the justification for permitting stockholders to hir
ID: 2655284 • Letter: M
Question
Milton Friedman argues that the justification for permitting stockholders to hire corporate executives is that an executive is an agent serving the interests of:
The Stockholders
The Stakeholders
Society
Social Welfare
0.5 points
QUESTION 21
Friedman argues that the corporate executive should avoid:
having social interests outside of business endeavors.
spending someone else's money for a social interest.
publicizing their opinions about social justice issues.
spending their own money for a social interest.
0.5 points
QUESTION 22
According to Friedman, the relationship between a corporate executive and a stockholder is a relationship of:
agent to executive.
agent to principal.
principal to agent.
executive to agent.
0.5 points
QUESTION 23
Milton Friedman argues that the political principle that underlies the market mechanism is:
Disagreement
Unanimity
Diversity
Polarity
0.5 points
QUESTION 24
In the context of Stone’s discussion of arguments about the social responsibility of business, the argument that the management of a corporation promises the shareholders that it will maximize the shareholders’ profits and therefore cannot spend resources on other concerns is called the:
Polestar Argument
Role Argument
Promissory Argument
Agency Argument
0.5 points
QUESTION 25
Stone contends that the debate over corporate social responsibility often ignores a truth about human behavior, namely, that we generally expect human beings to act in a way calculated to:
Benefit others
Benefit only themselves
Benefit no one
None of the above
The Stockholders
The Stakeholders
Society
Social Welfare
Explanation / Answer
Answer:
Stockholders.
Q.21.
spending someone else's money for a social interest.
Q.22.
Agent to Principle.
Q.23.
Unanimity
Q.24.
Agency Argument
Q.25.
Benefit only themselves