According to Freeman directing our business activities in or

According to Freeman, directing our business activities in order to benefit anyone more than our shareholders inevitably leads to a decrease in profits. Select one: True False

Solution

[FALSE]

Freeman, in 1983, theorized that by considering the interests of all the stakeholders into account, the firm could do “better” than by simply focusing on shareholder interests and can realize more profitability. The \"shareholder only\" focus (as mentioned in the question) is theorized by Friedman in 1970s.