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This quiz consists of 5 multiple choice and 5 short answer questions through Mergers and Acquisitions.

Multiple Choice Questions

1. Buffett admitted that issuing ________ in mergers cost shareholders money, according to the book.
(a) Stock.
(b) Bonds.
(c) Announcements.
(d) Bills.

2. Buffett avoids _________ share value to existing shareholders by true value for value merger, using stock as inflated currency.
(a) Dispersing.
(b) Stabilizing.
(c) Diluting.
(d) Increasing.

3. Alternative investments were considered for __________ high quality investments when a preferable business could not be located.
(a) Long-term.
(b) Basic.
(c) Short-term.
(d) Future.

4. While Munger and Buffett were excited when they are in the process of acquiring a new business, they were also _________.
(a) Rational.
(b) Complacent.
(c) Unhurried.
(d) Bored.

5. What did the zero-coupon bonds not pay to the investor in the end?
(a) Locked in interest.
(b) Current interest.
(c) Profit.
(d) Taxes.

Short Answer Questions

1. A __________ was something that Buffett and Munger believed was valuable to inform businesses owners of the year's business growth.

2. LBO operators benefitted from the use of ________ to reshuffle business, risk little of their own money to gain high fees, etc.

3. The goal of the partners was to maximize the real economic benefits, not just the number of ___________.

4. Buffett and Munger also followed the idea of minimal use of _______ and leverage, helping to create solid investments.

5. Value came from a fixed-income feature to set minimum value with __________ as a bonus.

(see the answer key)

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