Question 7 of 10 Why are property rights important to a free enterprise system? A. They limit the amount of property a single business can own. B. They encourage businesses to focus on a specific type of service. C. They establish fair prices for important goods and services. D. They prevent rivals from copying a business's product.

## Step 1<br />The question is asking why property rights are important to a free enterprise system. A free enterprise system, also known as capitalism, is an economic system where private individuals and businesses have the right to own and operate property and businesses for their own profit. <br /><br />## Step 2<br />Option A suggests that property rights limit the amount of property a single business can own. This is not the primary role of property rights in a free enterprise system. Property rights do not limit the amount of property a business can own, but rather protect the rights of the owners.<br /><br />## Step 3<br />Option B suggests that property rights encourage businesses to focus on a specific type of service. While property rights can influence the type of business a company chooses to operate, they do not inherently encourage businesses to focus on a specific type of service.<br /><br />## Step 4<br />Option C suggests that property rights establish fair prices for important goods and services. While property rights can influence the pricing of goods and services, they do not directly establish fair prices.<br /><br />## Step 5<br />Option D suggests that property rights prevent rivals from copying a business's product. This is the primary role of property rights in a free enterprise system. Property rights protect the rights of the owners to their property, including their business's product. This prevents other businesses from copying their product without permission, which is a key aspect of a free enterprise system.