The free market theory provides the rationale for the responsibility of managers to make as much money for their stockholders as possible.

Question

Quizplus · Accepted Answer

The free market theory, as advocated by economists like Milton Friedman, posits that the primary responsibility of business managers is to maximize shareholder value, which translates to making as much money for stockholders as possible within the bounds of the law and ethical standards.

The Free Market Theory Provides the Rationale for the Responsibility