View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Part 2: Chapter 8, Icahn-TWA: From Greenmailer to Manager-Owner.

Multiple Choice Questions

1. Where did most of the money come from when Icahn actually acquired ACF, a railroad car leasing company?
(a) Milken financed much of the price.
(b) Ichan sold all of his Milken junk bonds.
(c) Ichan got the money from his uncle.
(d) Much of the purchase price came from the sale of some of the company's divisions.

2. Who was behind the success of both First Executive and Columbia Savings?
(a) Thomas Spiegle
(b) Lowell Milken
(c) Fred Carr
(d) Mike Milken

3. Why did Drexel have to separate from J. P. Morgan?
(a) the final break up of J. P. Morgan and Company
(b) the enactments of the Glass-Steagall Act in 1934
(c) a disagreement between Drexel and Morgan
(d) the regulations of the sherman Anti-Trust Act

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

5. What was the advantage FIFI and other like funds offer?
(a) simplicity of buying
(b) a higher yield than Treasury bonds
(c) more security than Treasury bonds
(d) better availability

Short Answer Questions

1. What do raiders look for in companies to take over?

2. What became the name of bonds that come into being during highly leveraged takeovers?

3. Why was Drexel Burnham's investment banking business diminished by 1975?

4. What is a proxy fight?

5. What government regulation made it easier for multiple mergers in the 1980s?

(see the answer key)

This section contains 358 words (approx. 2 pages at 300 words per page) View a FREE sample