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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 advantage did Milken's kind of debt offer?
(a) It was separate from bank loans and the bondholder could sell his bonds whenever he wanted
(b) It was done under the table so the banks did not know about it.
(c) It did not tie up cash the way loan repayments did.
(d) It was easier to use than getting a bank loan.

2. What is it called when someone holds a financial advantage over a company to force a sale?
(a) investment banking
(b) proxy fighting
(c) hijacking
(d) greenmail

3. Why did Drexel remain a privately-held company?
(a) Joseph refused to allow it to happen.
(b) It was too much of a temptation for a hostile takeover.
(c) Milken could then retain his need for secrecy.
(d) They did not want outsiders to get in on their business.

4. What did Joseph label his brainstorming information about LBOs?
(a) the X-Files
(b) the CIA files
(c) Air Fund or the highly confident letter
(d) the M&A files

5. What did the 1985 President's Council of Economic Advisers report on the issue of M&A conclude?
(a) that M&A was written into the Constitution
(b) that more study needed to be done
(c) that it was too small a matter to be concerned with
(d) that they were very beneficial for the economy

Short Answer Questions

1. What was a cause of the market crash of 1974?

2. Who did Joseph hire with a three-year contract calling for $3 million per year plus extras?

3. Who becomes Milken's ally and public face in 1974?

4. What was the result in 1974 when International Nickel Company raided ESB?

5. What did Carl Ichan become known as?

(see the answer key)

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