Consider the Following Scenario When Answering the Following Questions

question 78

Multiple Choice

Consider the following scenario when answering the following questions:
Jones owns a factory that is dumping toxic waste into a river where Smith owns a resort.At present,Jones is not filtering the water that he dumps into the river.There is a filter he could install that would remove a significant amount of the toxic elements from the water before it is dumped in the river.Jones and Smith have each assessed the situation and come up with the following data:

-If property rights over the river are assigned to Jones,then

• A) Jones will force Smith to close his resort.
• B) Smith will pay Jones up to $75 per day to install the filter.
• C) Smith will pay Jones up to $125 to install the filter.
• D) Jones will install a filter and pay Smith at least $75 per day.
• E) Jones will not install a filter.

---

Definitions:

Controversial

Pertains to issues or subjects that provoke public disagreement or debate.

Organizationally Related

Pertaining to aspects or functions that are directly connected to the structure, culture, or operations of an organization.

Incorrect

Not in accordance with fact; wrong or mistaken.

Informal Communication Network

The unofficial channels of communication within an organization, often known as the grapevine, which can spread information quickly but sometimes inaccurately.