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. What was Fred Joseph's strategy for hiring employees for Drexel?
(a) paying higher commissions than anyone else
(b) overhiring to learn which are the ones to keep
(c) getting recommendations from bigger firms
(d) hiring from the smaller firms so that they saw it as a step up

2. What company was a proxy fight that Carl Ichan lost?
(a) AB Electrolux
(b) Tappan
(c) Hammermill
(d) the Times, Inc.

3. What kind of business did Milken's Belvedere Securities do?
(a) traded bonds anonymously for clients of Drexel
(b) traded the body of the bond separate from its coupons
(c) traded new lamps for old in a manner of speaking
(d) traded business secrets learned in hostile takeovers

4. Where was much of the money coming from for takeovers in the 1980s?
(a) the break up and sale of raided company divisions
(b) foreign investors with extra capital
(c) fake junk bonds imitating Milken's bonds
(d) big blind pools that Milken would raise for his customers

5. What do raiders look for in companies to take over?
(a) public good will, which continues after the takeover
(b) companies saddled with heavy debt
(c) new research and development projects
(d) cash flow, which is one of the most important items in LBOs

Short Answer Questions

1. What did the Milken Group do in 1983?

2. How did the firm now have equity stakes in most of the companies that it financed?

3. Who was behind the success of both First Executive and Columbia Savings?

4. Why did Drexel Burnham Lambert agree to let Milken move his operation at a cost of millions of dollars?

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

(see the answer key)

This section contains 384 words (approx. 2 pages at 300 words per page) View a FREE sample