|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 10, 'Drexel is like a God'.
Multiple Choice Questions
1. What did Milken's involvement in this business do for him personally?
(a) He married a movie star.
(b) He was finally able to take the train.
(c) He became very wealthy.
(d) He finally gained respect from Burnham.
2. What does FIFI stand for?
(a) Five Investment Features Initiative
(b) Fund Income from Favored Investors
(c) Field Investment File Information
(d) First Investors Fund for Income
3. Why was Milken so interested in low grade bonds?
(a) equity offerings were not an option for the Drexel Burnham market
(b) that was all he could afford
(c) he liked to gamble big time
(d) they were the only ones he really understood
4. Why did Drexel remain a privately-held company?
(a) They did not want outsiders to get in on their business.
(b) Joseph refused to allow it to happen.
(c) It was too much of a temptation for a hostile takeover.
(d) Milken could then retain his need for secrecy.
5. What did the 1985 President's Council of Economic Advisers report on the issue of M&A conclude?
(a) that it was too small a matter to be concerned with
(b) that more study needed to be done
(c) that M&A was written into the Constitution
(d) that they were very beneficial for the economy
Short Answer Questions
1. To troubled businesses, what was Drexel's unregistered exchange offer?
2. What company was a proxy fight that Carl Ichan lost?
3. With whom was the firm of Drexel Burnham Lambert identified by the late 1970s?
4. By 1981, what was Drexel responsible for?
5. Why were Milken's imitators not as successful as he was?
This section contains 347 words
(approx. 2 pages at 300 words per page)