|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions and 1 (of 3) essay topics.
Short Answer Questions
1. In the mid-1990's, what was the ratio of leverage on Wall Street?
2. What typically happens to stock prices when a merger is revealed?
3. In its first bad year, what did Long-Term maintain?
4. In 1998, what market did Long-Term bet would decline?
5. During the turmoil of 1998, investors avoided Long-Term because they were trying to avoid what?
Write an essay for ONE of the following topics:
Essay Topic 1
There were many warning signs that the profits delivered by Long-Term couldn't last. Yet, many companies did everything possible to keep some investments going at higher and higher levels when they should have slowed. Using greed as a theme, analyze this situation.
Essay Topic 2
Write a brief essay supporting or refuting the following statement, citing examples from the text: The irresponsible management of Long-Term by the partners led to its downfall.
Essay Topic 3
When Meriwether set up Long-Term, he had to take many steps to create the company. Write an essay examining the process Meriwether went through to create Long-Term.
This section contains 891 words
(approx. 3 pages at 300 words per page)