Property Rights Are Important to the Innovation Process Because

question 39

Multiple Choice

Property rights are important to the innovation process because:

• A) Without property rights, innovation would actually be too strong, hampering manufacturing.
• B) Organizations would have little incentive to innovate.
• C) Managers would behave unethically if property rights were too strong
• D) Both A and C

---

Definitions:

Capital Funds

Financial resources that are used to fund a company's operations and growth, typically sourced from equity or debt.

Net Present Value

A method to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period.

Variable Costs

Expenses that fluctuate in direct proportion to the quantity of output or sales, including items like labor and materials.

Sensitivity Analysis

A method employed to ascertain the effects of varying an independent variable on a specific dependent variable, given certain presuppositions.