|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Why was the partner Groupe Bruxelles Lambert S.A. not happy with Drexel and trying to take it over?
(a) the Drexel practice of not paying dividends
(b) Drexel's secret bookkeeping
(c) the falling stock price of drexel
(d) the Drexel continued support of Mike Milken
2. What indicated the level of fear at Drexel during the investigations?
(a) Joseph resigned as CEO.
(b) Drexel began firing employees.
(c) All bonuses were cancelled.
(d) Many employees were leaving the firm.
3. What could happen to Drexel with so much power vested in one man?
(a) possible take over of the company
(b) possible abuse of power
(c) possible collapse of the company
(d) possible loss if anything happened to him
4. What did Milken do for people who had worked with him?
(a) gave them no competition contracts
(b) helped people find jobs
(c) got rid of all of them
(d) contributed to their children's education
5. Who were some customers who received better deals from Milken?
(a) Murdock and Turner
(b) Oscar Wyatt and Coastal Corporation
(c) Carl Icahn and Samuel Heyman
(d) Perelman and Rocho
6. What did Milken demand from everyone around him?
(a) any information they overheard
(b) things done the way he wanted them done
(c) that they call him Mr. Milken
(d) more money for his services
7. How were some people able to beat Milken on deals?
(a) by hiring better salesmen
(b) by attacking Milken
(c) by using illlegal means
(d) by offering better prices
8. How did Drexel get around the law and continue the takeovers?
(a) by creating dummy companies to made the acquisitions
(b) by using offshore banks to finance their deals
(c) by lobbying to get the rules overturned
(d) by using preferred stock instead of bonds as a means of financing
9. In many ways, what became the role of Milken?
(a) the role of adviser
(b) the role of enforcer
(c) the rold of peacemaker
(d) the role of enquirer
10. Who made the contact for Wedvick with Kansa?
(a) Rodrigo Rocha
(b) Michael Milken
(c) Fred Joseph
(d) Carl Icahn
11. How did Milken's unit function within the larger firm?
(a) as a front for other Drexel activities
(b) as the firm's banker
(c) as an integrated member of the firm
(d) as a separate firm within Drexel
12. In what was Atlantic Capital involved?
(a) ponzi schemes
(b) unmonitored investments
(c) forging bond documents
(d) selling bond coupons
13. What did Grant say the public was competing for at that point?
(a) for invitations to the Preditors' Ball
(b) for more and more media attention
(c) for ownership in television stations and newspapers
(d) for securities of high and higher yield - and poorer quality
14. What did Kansa and Clarendon both have that Wedvick needed?
(a) corrupt employees
(b) excess capital
(c) AA rating
(d) no supervision
15. For whose benefit were most of the investment partnerships?
(a) for the corporate employees
(b) for Milken
(c) for potential clients
(d) for the Drexel firm
Short Answer Questions
1. When did the trading of Milken, Icahn, Posner and Boyd Jeffries, as well as others come under investigation?
2. Who paid $2-billion for the Metromedia television stations and their assets?
3. What did Grant continue to predict?
4. Why did Atlantic Capital have to stop selling Wedvick's contracts?
5. What are two other notable takeovers done by Perelman after Revlon?
This section contains 614 words
(approx. 3 pages at 300 words per page)