|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Why did Buffett buy into Cap Cities?
(a) to infuse it with capital and to provide stability for its merger with ABC.
(b) it was a good deal.
(c) the price was cheap.
(d) he was looking to diversify.
2. What information did Jon Gutfruend withhold?
(a) that a Salomon trader made a false bid.
(b) the level of Salomon bonuses.
(c) Salomon trading strategy.
(d) Salomon bond revenues.
3. How many people worked at Berkshire's world headquarters:
(a) two hundred fifty.
(c) twenty seven.
4. Which investment banking firm did Buffett invest in?
(a) Merrill Lynch.
(b) J.P. Morgan.
(d) Smith Barney.
5. Regarding his textile mills, in the early 1980s, Buffett:
(a) sold them.
(b) continued to operate at a loss.
(c) closed them.
(d) made large capital investments.
6. In Congressional testimony, Buffett makes it clear that:
(a) he would not cooperate with the government.
(b) he wanted the charges dropped.
(c) he would tolerate no wrong doing at Salamon.
(d) he wanted the perpetrators of the crime prosecuted.
7. Buffett's annual shareholders meetings differed from those of other companies because:
(a) he wouldn't attend his.
(b) his were well attended.
(c) he refused to hold shareholder meetings.
(d) his were elegantly catered.
8. Mrs. B built her furniture store into the biggest furniture store in the:
9. The settlement of the public and private cases cost Salomon:
(a) $400 million.
(b) $45 million.
(c) $125 million.
(d) $490 million.
10. Buffett looked for stocks:
(a) whose value was greater than its price.
(b) that had a product he believed in.
(c) that had an attractive annual report.
(d) that was owned by people he knew.
11. How long did Buffett go without buying any common stock after the Cap Cities deal in 1985?
(a) six months.
(b) one year.
(c) eighteen months.
(d) three years.
12. Buffett's views on hostile takeovers included all but:
(a) they involved transfers of assets.
(b) they were no value creating.
(c) they greatly benefited society.
(d) they resulted in a loss of tax dollars to society.
13. Salomon grew from 1955 on when they announced:
(a) they would ac cept no new partners.
(b) they went public.
(c) they were purchased by J.P. Morgan.
(d) partners would leave their capital in the firm.
14. Who does Buffett select to run Salomon?
(a) Nicholas Brady.
(b) Paul Mozer.
(c) JM Meriwether.
(d) Deryck Maughan.
15. At a press conference, Buffet announced that he will:
(a) the government charges will be dropped.
(b) he will financially support the firm.
(c) he resigns from the board.
(d) serve as an interim unsalaried chairman for as long as he is needed.
Short Answer Questions
1. Which of the following was not one of the permanent three in Berkshire's portfolio?
2. Why is finance the opposite of investing?
3. What did Susie unexpectedly do at the age of forty-five?
4. What stock did Buffett begin to buy in the fall of 1988?
5. Soon after Buffett arrives in New York, he learns that:
This section contains 522 words
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