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

2. What was Ichan able to do after he got a seat on the board of Tappan?
(a) He was able to raise the stock prices.
(b) He prevented the company from being taken over.
(c) He maneuvered the sale of the company to AB Electrolux.
(d) He took over running the company.

3. What was the result of Tax Law reform in 1981?
(a) The increase in cash flow put companies in a better position to service debt.
(b) Big corporations faced running out of money.
(c) More and more companies were burdened with higher taxes.
(d) Only very large companies could make mergers and accquistions.

4. What is it called when one investor holds stock for another investor and thus conceals the identity of the owner?
(a) disguising stock
(b) covering stock
(c) shielding stock
(d) parking stock

5. What could happen to Drexel with so much power vested in one man?
(a) possible take over of the company
(b) possible loss if anything happened to him
(c) possible collapse of the company
(d) possible abuse of power

Short Answer Questions

1. What does FIFI stand for?

2. What did Grant say the public was competing for at that point?

3. What did Milken take personally with his clients?

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

5. Where was much of the money coming from for takeovers in the 1980s?

(see the answer key)

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