View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What was the subject of debate in the mid 1980s during the M&A onslaught?
(a) the economic advantages of takeovers
(b) the legality of hostile takeovers
(c) the cash flow of takeovers
(d) the dangers of over growth

2. What did Grant think about the junk bond business?
(a) that Wall Street had gone too far with junk bonds
(b) that junk bonds was the perfect vehicle for M&A
(c) the Wall Street was too slow in accepting them
(d) that it was too heavily regulated

3. Why did people like Lawrence Coss of Green Tee Acceptance feel they were targets of hostile takeovers?
(a) because they were not Jewish
(b) because they wouldn't give in to Milken
(c) because Milken did not like them
(d) because they wanted more money for their companies

4. What was Peer Wedvick devising?
(a) a scheme to sell contracts involving housing funds
(b) buying commercial paper
(c) flipping houses and commercial buildings
(d) money laundering

5. When did the trading of Milken, Icahn, Posner and Boyd Jeffries, as well as others come under investigation?
(a) Right after the Preditors' Ball in 1987
(b) In late December 1986
(c) Long before the SEC began investigating Boesky
(d) Within minutes of the announcement of Boesky's plea bargain

6. What was beginning to happen during this time?
(a) Junk bonds began to disappear from the market.
(b) Junk bonds were becoming poorer in quality and there were more bankruptcies and defaults
(c) Unemployment shot up as a results of the mergers and acquisitions.
(d) People were making vast amounts of money trading junk bonds.

7. How were some people able to beat Milken on deals?
(a) by offering better prices
(b) by hiring better salesmen
(c) by using illlegal means
(d) by attacking Milken

8. Who did Joseph hire with a three-year contract calling for $3 million per year plus extras?
(a) Robert Salsbury
(b) Martin Siegel
(c) Dennis Levine
(d) Antonio Gebauer

9. What did Milken do for people who had worked with him?
(a) contributed to their children's education
(b) got rid of all of them
(c) gave them no competition contracts
(d) helped people find jobs

10. What did Kansa and Clarendon both have that Wedvick needed?
(a) excess capital
(b) no supervision
(c) corrupt employees
(d) AA rating

11. To Drexel, what did certain concessions to clients mean?
(a) a bad reputation among other investors
(b) having clients indebted to them
(c) very little because they were so big
(d) more deals and more money down the road

12. Why did Milken hold a mini-Predators' Ball in Tokyo?
(a) He did things like that on a whim.
(b) He was looking at getting into foreign markets.
(c) He was invited by Japanese businessmen.
(d) The Balls in Los Angeles were drawing too much publicity.

13. Who at Drexel became a problem because of a lawsuit by Beverly Hills Savings and Loan?
(a) Carl Ichan
(b) Jim Dahl
(c) Martin Siegel
(d) Fred Joseph

14. Why did none of the thirty bills introduced covering takeovers in 1984-85 pass?
(a) The Congress did not think it was an important matter.
(b) Drexel took leading politicians on a vacation to the Bahamas.
(c) Many politicians who received large contributions attended the Predators' Ball in 1986.
(d) Congress was waiting for a supreme court decision.

15. What was coming to an end?
(a) Milken's ability to raise millions of dollars in a few days
(b) Drexel's plans for selling the firm
(c) Drexel's presence on Wall Street
(d) Milken's anonymity

Short Answer Questions

1. In what was Atlantic Capital involved?

2. Why did Atlantic Capital have to stop selling Wedvick's contracts?

3. Who were some customers who received better deals from Milken?

4. In many ways, what became the role of Milken?

5. What is it called when one investor holds stock for another investor and thus conceals the identity of the owner?

(see the answer keys)

This section contains 651 words (approx. 3 pages at 300 words per page) View a FREE sample