A management buyout can contribute significantly to a firm's operating performance.

Question

Quizplus · Accepted Answer

A management buyout allows the current management team to take control of the company, which can result in increased motivation and efficiency as they have a vested interest in the success of the company. They also have a deeper understanding of the business operations and are more familiar with the company's culture and values. Therefore, a management buyout can lead to improved operating performance.

A Management Buyout Can Contribute Significantly to a Firm's Operating