What are property rights in a business context?

In a business context, property rights refer to the legal rights that individuals or businesses have to own, use, and transfer property. This concept is fundamental in establishing ownership, which is often reflected in a company's net worth or capital. When a business's ownership is registered as net worth, it signifies that the business has recognized and documented its assets, such as real estate, equipment, and intellectual property, which are integral to its operations.

This registration of ownership provides businesses with the security and confidence to make investments, seek financing, and engage in transactions. Properly defined and enforced property rights are essential for the functioning of a market economy, as they encourage entrepreneurship and facilitate voluntary exchanges.

The other choices provided do not directly pertain to the definition of property rights. Government subsidies, employment rights, and pricing strategies, while important aspects of business operations, do not encapsulate the concept of ownership and its associated rights that are essential to property rights in a business context.