Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following is NOT true about profit maximization theory? OA. Profit maximization theory holds that the interests of other constituencies (eg, employees, suppliers,
Which of the following is NOT true about profit maximization theory? OA. Profit maximization theory holds that the interests of other constituencies (eg, employees, suppliers, residents of the communities in which businesses are located) must be given consideration over profit B. Profit maximization theory holds that the interests of other constituencies (eg, employees, suppliers, residents of the communities in which businesses are located) are not important in and of themselves OC. The traditional view of the social responsibility of business is that business should maximize profits for shareholders OD. Friedman asserted that in a free society, "there is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception and fraud." OE. Milton Friedman, who won the Nobel Prize in economics when he taught at the University of Chicago, advocated the theory of maximizing profits for shareholders
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started