In the real world, it's so much more likely to be "he's a cool guy, we went to the same prep school, why not?" Which renders the same result, but in less of a movie-script dramatic way.
Wrong. It's extremely common, but it's also subtle.
It's best if the target doesn't know what you have on him. That's the beauty of business school. You were out drinking with him 25 times and he doesn't remember half of them, so you don't have to mention "the dirt". (Also: you shouldn't. Explicit extortion will put you in jail.) He has no memory of what specific episodes you have on him, and there might not even be any. He just knows that if you say, "introduce me to <Y>" or "invite me to your winter party" that he has no choice.
(I was there in that capstone project where you had a bug in the excel spreadsheet and we just pasted value over it!)