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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. With whom was the firm of Drexel Burnham Lambert identified by the late 1970s?
(a) Fred Joseph
(b) Michael Milken
(c) Tubby Burnham
(d) Ronald Reagan

2. How was Joseph building his diversified team?
(a) by hiring people away from other firms for huge salaries
(b) by taking his time to get the right people together
(c) by training inexpensive novices to learn the business
(d) by computerizing his entire operation

3. What was Fred Joseph's strategy for hiring employees for Drexel?
(a) getting recommendations from bigger firms
(b) hiring from the smaller firms so that they saw it as a step up
(c) paying higher commissions than anyone else
(d) overhiring to learn which are the ones to keep

4. What did Joseph need to achieve his goal of making Drexel a world-class institution?
(a) to mastermind an M&A for Drexel
(b) to learn the definition of leveraged buyouts
(c) to stop dealing in junk bonds
(d) to get into M&A

5. When inflation raised the value of assets but not stock prices, what was the result?
(a) People stopped buying stocks and company values soared.
(b) It was cheaper to buy a company than to start out from scratch.
(c) People began selling their stocks to start new businesses.
(d) Junk bonds became less useful in building wealth.

Short Answer Questions

1. Why were Milken's imitators not as successful as he was?

2. What does FIFI stand for?

3. How was Drexel being spoken of after the success of so many hostile takeovers?

4. Why did none of the thirty bills introduced covering takeovers in 1984-85 pass?

5. Why did Drexel want Carl Icahn as a client?

(see the answer key)

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