Question

The managers at johnson & johnson who authorized the buyback of defective products might have endorsed milton friedman’s shareholder, or profit-maximizing, view.

Answer 1

Answer:

a. Organizations must make money to stay in existence. Making money, then, should be the sole focus of an organization's activities.

d. Organizations have one responsibility: to increase the wealth of their stockholders.

Explanation:

According to Friedman, the purpose of a firm is to make returns for its stockholders. This means that Organizations have one responsibility and that is to increase the wealth of their stockholders.

They will do this by making money. Making money will enable them keep up the operations of the business as well as to pay stockholders adequate returns. In order to achieve their objective of increasing shareholder wealth, they need to focus on making money.