Taking a firm private means turning a profit-seeking corporation into a nonprofit corporation in order to avoid a hostile takeover.

Question

Quizplus · Accepted Answer

Taking a firm private means buying out the shareholders and making the company privately owned, not turning it into a nonprofit corporation. It is typically done to have more control over the company's operations and avoid the pressures of public shareholders.

Taking a Firm Private Means Turning a Profit-Seeking Corporation into a Nonprofit