|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Buffett's role in protecting certain CEOs from takeovers was referred to as:
2. Soon after Buffett arrives in New York, he learns that:
(a) he is voted off the board.
(b) the government dropped its investigation.
(c) the Treasury has banned Salomon from its auctions.
(d) the situation is more serious than he thought.
3. What did Susie unexpectedly do at the age of forty-five?
(a) moved out of Buffett's house and into a San Francisco apartment.
(b) tried to commit suicide.
(c) returned to school.
(d) filed for divorce.
4. Buffett differed from other CEOs in that he:
(a) he did most of his work at home.
(b) he hired a variety of secretaries.
(c) he did not have an office.
(d) did not have a structured appointments schedule.
5. The Efficient Market Theory was popular because it:
(a) was based on technology.
(b) extended the theories of Adam Smith to financial markets.
(c) proved accurate.
(d) was simple.
6. When is a squeeze considered illegal?
(a) if the trader doesn't reveal the information.
(b) if traders conspire to manipulate prices.
(c) if the trader profits.
(d) if the traders commit the squeeze.
7. By the end of 1988, the Berkshire share price was approximately?
8. How long did Buffett go without buying any common stock after the Cap Cities deal in 1985?
(a) eighteen months.
(b) six months.
(c) three years.
(d) one year.
9. Mrs. B began in the furniture business by:
(a) buying a small furniture store and selling it.
(b) selling furniture out of her basement.
(c) working in her father's store in Minsk.
(d) working as a clerk in a furniture store in Omaha.
10. The Treasure sells bonds to:
(a) the highest bidder.
(b) banks only.
(c) the public.
(d) the Fed.
11. By the 1990s, Buffett was worth:
(a) $620 million.
(b) $500 million.
(c) $250 million.
(d) $1 billion.
12. What information did Jon Gutfruend withhold?
(a) Salomon bond revenues.
(b) that a Salomon trader made a false bid.
(c) the level of Salomon bonuses.
(d) Salomon trading strategy.
13. Why did Buffett buy into Cap Cities?
(a) it was a good deal.
(b) to infuse it with capital and to provide stability for its merger with ABC.
(c) the price was cheap.
(d) he was looking to diversify.
14. Buffett's theory of trading is based on:
(a) Graham and Dodds.
(b) Randon Walk.
(c) Efficient Market Theory.
(d) Accurate price forecasts.
15. Buffett's views on hostile takeovers included all but:
(a) they involved transfers of assets.
(b) they greatly benefited society.
(c) they resulted in a loss of tax dollars to society.
(d) they were no value creating.
Short Answer Questions
1. When Buffett is described as a gorilla, it refers to:
2. Why did Buffett refuse to financially support his adult children?
3. In Warren's view, the managers of other people's money:
4. Which of the following was not a reason why Warren didn't move to Southern California?
5. With zero-coupon bond, the borrower:
This section contains 541 words
(approx. 2 pages at 300 words per page)