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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Berkshire was a ________ corporation, as it was described in this section of the book.
(a) Shared.
(b) Co-owned.
(c) Private.
(d) Public.

2. Buffett noted that a CEO had no direct ______ or clear standards of performance, making even under performing ones able to continue working.
(a) Responsibilities.
(b) Authority.
(c) Workers.
(d) Supervisor.

3. Buffett's ______ years of experience cause him to think that efficient times in the market do not constitute an efficient market.
(a) 50.
(b) 30.
(c) 15.
(d) 63.

4. In some cases, the benefits of partial ownership earnings may far outweigh the ________ acquisition cost.
(a) Value.
(b) Fees and.
(c) Market.
(d) Per-share.

5. What was the name of Warren Buffett's partner in the company they shared?
(a) Steve Jobs.
(b) Lloyd Munger.
(c) Bill Gates.
(d) Charlie Munger.

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

7. The _______ doesn't feel poorer when the embezzler is getting richer.
(a) Country.
(b) Victim.
(c) Market.
(d) Government.

8. _________ percentage ownership was acquired when the market presented opportunities, according to the book.
(a) Beholden.
(b) Greater.
(c) Lesser.
(d) More.

9. When did Berkshire Hathaway begin as a textile company?
(a) 1967.
(b) Early 1800s.
(c) Early 1900s.
(d) 1956.

10. On the other hand, a zero bond may not require _________, but can be satisfied with pay in kind bonds.
(a) Interest payments.
(b) Cashouts.
(c) Legal help.
(d) Papers.

11. Which business did Munger and Buffett decide to close, despite their best efforts?
(a) GEICO.
(b) None.
(c) Coca-Cola.
(d) Textile.

12. What was the initial book value of the company that Buffett and his partner acquired in 1964?
(a) $35.00
(b) $47.01.
(c) $19.46.
(d) $10.67.

13. Buffett managed by ________-related business principles, according to the book.
(a) Business.
(b) Math.
(c) Owner.
(d) Stock.

14. Berkshire might evolve into a _______ form of board situation, upon Buffett's death, according to the book.
(a) Dissolved.
(b) Third.
(c) Second.
(d) Fourth.

15. Buffett criticizes __________ market theory as be does not believe it to be a truth.
(a) Erasing.
(b) Eradicant.
(c) Efficient.
(d) Effective.

Short Answer Questions

1. The purchase of the company listed in #49 was influenced by whose investing principles?

2. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?

3. Buffett and Munger do not check _________'s manic depressive daily price quotes to validate their investment.

4. The bonds that Buffett decides to buy in 1989 were thought to be ________, but turn out to be fallen angels.

5. Buffett disliked _________ because of its leverage, according to the book.

(see the answer keys)

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