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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 15, Boesky Day.

Multiple Choice Questions

1. What often benefited Drexel in dealing with its clients?
(a) positive publicity
(b) inside information
(c) equity from the deals they took part in
(d) leads for new clients

2. What did Milken refuse to have in the Drexel annual report?
(a) his photo and the organization of his staff
(b) a description of his operation
(c) his letter to the shareholders
(d) the names of his staff

3. What did Bergerac's associates tell him about Perelman?
(a) that Perelman was known as a blowhard
(b) that Perelman had never done a hostile takeover
(c) that Perelman would use illegal means to take Revlon over
(d) that Perelman knew all about hostile takeovers

4. What were many of the money managers who started with Milken in the late 1970s doing in the 1980s?
(a) retiring and taking extended vacations
(b) staying with Milken because he was the best
(c) creating new ways of financing takeovers
(d) running their own funds

5. Why did the LTV situation not affect Drexel?
(a) The thrifts that collapsed and the defaults that occurred were not among Milken's customers
(b) Drexel pointed out the way LTV misused junk bonds.
(c) Drexel used its own money to secure the LTV bonds.
(d) Drexel engineered a second buyout of LTV.

Short Answer Questions

1. How did Milken's unit function within the larger firm?

2. For whose benefit were most of the investment partnerships?

3. Why did Milken's people say they performed so well?

4. Why did Ichan and Kingsley limit themselves to 4.9% of shares in companies?

5. What was a major factor in the failure of Beverly Hills Savings?

(see the answer key)

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