Adam Is a Major Stockholder in Precision Transmission Services (PTS)

question 71

Multiple Choice

Adam 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 Adam has talked to several relatives about his desire to get all of the PTS stock back in his family's hands. Adam is interested in _______________________________.

• A) taking the firm private
• B) a hostile takeover of the firm
• C) converting the firm to a general partnership
• D) forming a master limited partnership

---

Definitions:

Dairy Farm

An agricultural establishment primarily engaged in the production of milk and milk products from cows or other dairy animals.

EZ Ice Cream Inc.

Presumably a fictional company; without more context, it would represent a hypothetical business entity.

Condition Precedent

A condition in a contract that must be met before a party’s promise becomes absolute.

Condition Subsequent

A condition in a contract that operates to terminate a party’s absolute promise to perform.