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This quiz consists of 5 multiple choice and 5 short answer questions through Part 3: Chapter 14, Sovereign Privileges.

Multiple Choice Questions

1. What did the Revlon takeover prove?
(a) the power of Milken and junk bond financing
(b) that Revlon stock was way overvalued
(c) that Perelman knew nothing about hostile takeovers
(d) that women will buy Revlon no matter who owns the company

2. What did the Federal Home Loan Bank Board discover about what Spiegle at Columbia Savings and Loan was doing?
(a) using Columbia Savings and Loan money to finance his own investments
(b) making fictitious home loans
(c) financing his junk bond purchases with federally insured funds
(d) manipulating his competitors out of business

3. What became the craze on Wall Street in 1986?
(a) something called collective bargaining
(b) something called investment underwriting
(c) something called equity sharing
(d) something called merchant banking

4. What was the purpose of Fred Joseph's meeting at the Barbizon Plaza in New York?
(a) pirating talent from some of the biggest firms on Wall Street
(b) consideration of all ideas, even the far-out and the flamboyant, instead of the conservative
(c) gathering inside information to take back to Los Angeles
(d) to undermine Milken and take over control of the Department

5. Why were Milken's imitators not as successful as he was?
(a) They had no idea how he was doing his business.
(b) They could not invest as much firm money.
(c) They were bound by deeper government regulations.
(d) They could not raise the money Milken could or with the same speed.

Short Answer Questions

1. How did Milken break into the Las Vegas gambling business community?

2. Who informed the SEC that he was attempting to gain control of Triagle Acquisition Corporation?

3. What was Drexel able to do that made it so successful?

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

5. What often benefited Drexel in dealing with its clients?

(see the answer key)

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