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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 is a proxy fight?
(a) two blondes fighting
(b) having someone else fight a duel for you
(c) stockholder meetings where the management team is voted out
(d) stockholder meetings where some are locked out

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

3. Why did Milken take the bus from New Jersey to Wall Street?
(a) because he did not drive a car
(b) because he liked the people on the bus
(c) to avoid talking to Wall Street people
(d) because he could not afford the train

4. Why was Drexel Burnham's investment banking business diminished by 1975?
(a) Most of the major customers had fled.
(b) The bigger firms were copying its business model.
(c) Bond prices had risen too high.
(d) It had nothing to sell.

5. What was the object of gaining control of a company and sell off many of its divisions?
(a) to make money on the sales and then dump the parent company
(b) to bring the bought company down to manageable size
(c) to be left with the best part of the company almost for free
(d) to avoid reporting where the purchas price was coming from

Short Answer Questions

1. What was the result when many Drexel employees were not allowed into Milken's investment groups?

2. What was Peer Wedvick devising?

3. What did Joseph label his brainstorming information about LBOs?

4. Who made the acquisition in the American Natural Resources (ANR) case?

5. Why did Drexel remain a privately-held company?

(see the answer key)

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