Question

André, the plant manager, is interested in increasing the facility's productivity by utilizing MBO so that his managers and their employees are more focused on objectives. This month André asked his managers to concentrate on the two first steps of MBO, which are:

Answer 1

Answer:

The correct answer is to jointly set objectives with their employees and to have managers develop action plans.

Explanation:

Management Buy Out (MBO) are financial operations that involve the transfer of ownership or control of a company to a group of people and entities, among which are relevant directors, managers or employees thereof. Management Buy Out operations are characterized because the managers or managers of a business or company become the largest shareholders of the company, that is, they become the owners of the same. Initially, to be considered an MBO, it was necessary for managers to acquire the majority of the company or at least its effective control, but now also minority participations are included in this definition, although always significant. Often the management team is accompanied by some institution or group of investors outside the company that provide the necessary financing to carry out the operation and with which, consequently, share the control of the company.