Final answer:
Coase's theory discusses the importance of defining property rights in resolving conflicts and determining responsibilities.
Step-by-step explanation:
This question pertains to the concept of property rights in the field of business. Coase pointed out that property rights need to be clearly defined in order to resolve conflicts and determine who is responsible for certain costs. For example, if a farmer owns a field, they have a property right not to have it burned. If a railroad owns its tracks, it has a property right to run its own trains. The allocation of property rights determines who will pay for the measures needed to reduce risks.