Property Rights Can Be Defined and Enforced

question 86

Multiple Choice

Property rights can be defined and enforced

• A)only by the government
• B)only by ethical norms
• C)by the government and by ethical norms
• D)only through constant renegotiation
• E)by government, by informal social actions, and by ethical norms

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Definitions:

Lessee

A person or entity that leases property or equipment from another, known as the lessor, under a lease agreement.

Lessor

An entity or individual that owns an asset and grants another party the right to use that asset in exchange for periodic rental payments.

Capital Lease

A lease classified by the lessee as an asset and liability on the balance sheet because it effectively transfers substantially all risks and rewards of ownership to the lessee.

Executory Costs

These are costs associated with fulfilling the terms of a contract, excluding the direct material and direct labor costs, such as utilities, insurance, and property taxes involved in leasing.