Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It is managers' responsibility to act solely in the interests of shareholders. The only responsibility of the managers of the corporation is to make profit,

"It is managers' responsibility to act solely in the interests of shareholders. The only responsibility of the managers of the corporation is to make profit, because it is for this task that the firm has been set up and the managers have been employed. Acting for any other purpose constitutes a betrayal of their special responsibility to shareholders and thus essentially represents a 'theft' from shareholders' pockets"

Milton Friedman

Critically assess the above statement.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

MGMT Principles Of Management

Authors: Chuck Williams

12th Edition

0357137728, 9780357137727

More Books

Students also viewed these General Management questions

Question

5. Talk at the right times with the right tone of voice and volume.

Answered: 1 week ago