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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 is sometimes the result of an LBO?
(a) a loss of company assets
(b) a company that has more assets than liabilities
(c) a corporation that is laden with debt
(d) a need to acquire other companies to pay for the buyout

2. For whom did Milken do trading?
(a) just for Drexel Burnham Lambert because of the volume of work
(b) not only for customers, but also his own account and his group's account
(c) only for family and friends to keep attention away from himself
(d) only for himself now because he was making so much money

3. What is a proxy fight?
(a) two blondes fighting
(b) stockholder meetings where the management team is voted out
(c) stockholder meetings where some are locked out
(d) having someone else fight a duel for you

4. What concept did Milken continue to support?
(a) the cautions of using junk bonds
(b) the owner-manager of businesses
(c) the legality of takeovers
(d) the switch to high-yield securities

5. For whose benefit were most of the investment partnerships?
(a) for the Drexel firm
(b) for potential clients
(c) for the corporate employees
(d) for Milken

Short Answer Questions

1. What did Kansa and Clarendon both have that Wedvick needed?

2. What did Milken want at work?

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

4. Who was another player involved in the National Can takeover attempt?

5. What did the Milken brothers do probably without notifying Drexel?

(see the answer key)

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