In a Management Buyout,which of the Following Is a Problem

question 19

Multiple Choice

In a management buyout,which of the following is a problem that the managers buying out the owners and running the company typically face?

• A) Lack of capital
• B) Lack of expertise
• C) Issues with the legal structure
• D) Issues with employee retention

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Definitions:

Bureaucratic Innovations

New methods or improvements introduced within administrative and organizational structures to enhance efficiency and productivity.

Productivity

Refers to the amount of goods or services produced for every hour worked.

Quality Circles

Groups of workers who voluntarily come together to solve problems and improve work processes and quality in their organization.

Bureaucratic Inertia

The tendency of bureaucratic organizations to resist change and continue with established procedures, often leading to inefficiency or outdated practices.