Enforcing Property Rights in an Economy Will

question 92

Multiple Choice

Enforcing property rights in an economy will

• A)cause the market system to work less efficiently.
• B)decrease the level of foreign portfolio investment.
• C)encourage corruption and expand the underground economy.
• D)raise the level of investment.

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Definitions:

Decentralization

The distribution of decision-making powers away from a central authority to lower levels in an organization.

Franchise

The right or license granted to an individual or group to market a company’s goods or services.

License

A legal authorization allowing an individual or entity to use a piece of property or engage in a particular activity or business.

Decentralized Company

A decentralized company allows for decision-making authority to be distributed among various levels within the organization rather than being concentrated at the top.