Student: Business and Milton Friedman

Milton Friedman bases his opinion on businesses and profit maximization on the foundation of free enterprise. “The free market theory believes that business managers have only one primary responsibility, which is to maximize profit; also, the theory tells that government should not involve in economic matters, except to prevent fraud and coercion” (p. 7) Mr. Friedman argues that a corporation, unlike a person, cannot have responsibility. I disagree with this notion. I don’t think that anyone would engage in a business contract with a corporation if they thought that a corporation was not responsible to pay its bills. So therefore, a corporation can have legal, and moral responsibilities. Milton Friedman uses what, to me, is the key phrase 'as long as it stays within the rules of the game ' but does not define the phrase in terms of the legal system. My question is what about the rules of the game that are not so much as even suggested in the law? There are other rules that companies have to follow if they want to be successful; such as the obvious supply and demand rules in the marketplace. Also, as we have seen with the production of new ideas and technologies, the law follows progressions in technology and thinking. But the principle of responsibility leads the legal cases being decided. Being compliant with the law may keep them out of court, but companies know that holding themselves accountable to a higher standard will keep them in a good place with their customers,

In Canada the accounting standards are set by the Accounting Standards Board of Canada (AcSB). AcSB establishes financial accounting and reporting standards for use by Canadian companies and not-for-profit organizations. The international standards are set by the International Accounting Standards Board (IASB).

2. The knowledge is helpful to present potential investors, creditors and others in assessing the amounts, timings, and uncertainty of future cash flows,

What makes a large organization like Wal-Mart financially successful? One could say it is the result of outstanding personnel or perhaps a strong determination to succeed. These factors certainly contribute. However the key to financial success in organizations lies in good accounting. Since early civilization began, accounting has been an important part of our financial transactions. In today’s world our use of modern accounting systems and accurate financial statements are critical components that make modern organizations successful. To facilitate understanding of this point one must understand how

The purpose of this paper is to define accounting, and identify the four basic financial statements. The paper also explains how the different financial statements are interrelated to each other and why they are useful to managers, investors, creditors, and employees.

The Financial Accounting Standards Board (FASB) sets the Generally Accepted Accounting Principles in the United States. The FASB Accounting Standards codification implements a system for organizing non-governmental generally accepted

In “Capitalism and Freedom,” Milton Friedman claims that a capitalist economy means economic freedom. But capitalism can create monopolies, which own commodities exclusively. A capitalist economic system requires a free market and the absence of government intervention in order to function. We can argue that a capitalist economic system does not necessarily mean individual or economic freedom. Instead, it promotes corruption and inequality.

I. As discussed many times in ACC 310, the FASB is the current accounting standard setters in the U.S. as they are empowered by the SEC. Visit the FASB website at www.fasb.org and answer the following questions: (Do not cut and paste but answer in your own words. Any material quoted should be cited).

Research: The Financial Accounting Standards Board (FASB) was founded in 1973 as a private and independent organization governed by the Securities Exchange Commission (SEC). The organization’s primary purpose is to establish the rules and standards of Generally Accepted Accounting Principles (GAAP) for the interest of the public. (“Facts about FASB”) “Since its inception in 1973, the FASB has issued 168 Statements of Financial Accounting Standards and a series of concepts statements”. (Facts about FASB, n.d.) The FASB's mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public,

Fast forward to 1970, where the APB’s main contribution “Basic Concepts and Accounting Principles Underlying Financial Statement of Business Enterprises was highly critized for achieving too little too late. Ultimately, resulting in the AICPA suggesting that the standard setting role be turned over to an autonomous body known as the Financial Accounting Standards Board

Cash flow can be used as an indication of a company 's financial strength by the comparability of the inflows and the outflows cash flows are essential to solvency. The statement presents a record of something that has happened in the past, such as the sale of a particular product, or forecasted into the future, representing what DJS expects to take in and to spend. Cash flow is crucial to an entity 's survival.

The application of AASB 108 helps in identifying the accounting policy or policies that will apply to a particular event when a certain Australian

To over view the knowledge we learnt from accounting theory and practice, the main thing I can conclude that is the tendency of accounting will shift away from technical way to people’s behaviour way. By understanding what should do, we should ask why and how we could improve and change it into a better way. This essay aims to explain how the theoretical material that we learn in lectures can be developed under a real practical manner.

Milton Friedman wrote in his famous 1970’s article in The New York Times Magazine, that “the one and only social responsibility of business, is to increase profits for shareholders.” Milton Friedman's view on business responsibility accentuates the importance of maximizing firm's value. He pointed that the “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, engaged in open and free completion without deception or fraud’’ and by taking on the burden of social cost, the business becomes less efficient (Milton Friedman, 1962).

Question 1: In the 1960s, Milton Friedman said that the purpose of business was to increase shareholder return and that issues of ethics were not the concern of any business – the law should be complied with, morality should be strived for, but ethical consideration had no place in the business environment.