Due to strong legal protection of property rights, businesses and indi

QUESTION

Due to strong legal protection of property rights, businesses and individuals will:

A. invest more in innovations.

B. face a huge burden from excessive taxation.

C. face more corruption.

D. move away from entrepreneurial activity.

E. run the risk of their profits being expropriated.

ANSWER

A
Strong legal protection of property rights is another requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth.