Mel is a major stockholder in Precision Transmission Services (PTS),a nationwide network of transmission repair shops founded by his father.Currently,PTS stock is sold on the open market,but Mel has talked to several relatives about his desire to get all of the PTS stock back in his family's hands.Mel is interested in:
A)taking the firm private.
B)a hostile takeover in the firm.
C)converting the firm to a general partnership.
D)forming a master limited partnership.

Question

Quizplus · Accepted Answer

Mel's desire to get all of the PTS stock back in his family's hands suggests that he wants to have full control over the company. Taking the firm private would allow him to do that, as he would no longer have to share ownership with outside shareholders. A hostile takeover or converting the firm to a general partnership may not be feasible or legally allowed, and forming a master limited partnership would involve bringing in outside investors, which goes against Mel's goal of consolidating ownership within his family.

Mel Is a Major Stockholder in Precision Transmission Services (PTS),a