Which of the following statements about property rights is true?
A) In an organization top managers have the strongest property rights.
B) Distribution of property rights has no effect on the instrumental values in the organization.
C) The property rights are the rights of the customers to demand compensation when a product purchased by them is faulty.
D) The distribution of property rights to different stakeholders determines how effective an organization is.

Question

Quizplus · Accepted Answer

The distribution of property rights to different stakeholders determines how effective an organization is. This is because property rights define who has control over organizational resources and how they can be used. The stronger the property rights of key stakeholders like shareholders, managers, or customers, the more effective an organization is likely to be in achieving its goals.

Which of the Following Statements About Property Rights Is True