Step 1: The linearity property of the \( z \)-transform states:
\[
\mathcal{Z} \{ a x(n) + b y(n) \} = a X(z) + b Y(z)
\]
where:
- \( x(n) \leftrightarrow X(z) \),
- \( y(n) \leftrightarrow Y(z) \),
- \( a \) and \( b \) are constants.
Step 2: Evaluating the given options:
- (A) Incorrect: The \( z \)-transform of a sum is the sum of individual transforms, not their product.
- (B) Correct: \( x(n) + y(n) \) transforms to \( X(z) + Y(z) \), satisfying linearity.
- (C) Incorrect: The product of signals in time does not result in an addition of their transforms.
- (D) Incorrect: The product of signals in time corresponds to convolution in the \( z \)-domain, not multiplication.