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

Multiple Choice Questions

1. Buffett and Munger both opposed any selective ________ and predictive growth rates from the CEOs who reported them.
(a) Disclosure.
(b) Purchases.
(c) Strategies.
(d) Truth.

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

3. What was the name of the bond holdings that Buffett added to Berkshire in 1989?
(a) Arrowhead.
(b) Pepsi.
(c) RJR Nabisco.
(d) General Mills.

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

5. Preferred stock is considered with _________ that Munger and Buffett like, admire, and trust.
(a) Values.
(b) History.
(c) Products.
(d) Management.

6. Munger and Buffett act like ________ when it comes to considering the economic prospects of the businesses they buy.
(a) Kids.
(b) Business analysts.
(c) Bankers.
(d) Stock traders.

7. Who did Buffett authorize to use the essays in the book to popularize the teachings and Buffett's own implementation of the teachings?
(a) No one.
(b) Smith.
(c) Munger.
(d) Cunningham.

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

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

10. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.
(a) Stock.
(b) Checking.
(c) Mortgage.
(d) Bond.

11. The partners considered a lesser interest if the ________ price was less than what it would be for 100%.
(a) Pro-management.
(b) Pro-rata.
(c) Pro-biotic.
(d) Pro-rate.

12. How many owner-related business principles were listed in this section of the book by Buffett?
(a) 10.
(b) 25.
(c) 14.
(d) 7.

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

14. The content of the book was often used as a standard text at the Cardozo School of __________.
(a) Engineering.
(b) Medicine.
(c) Business.
(d) Law.

15. Buffett is proud that ____% of the shares outstanding at the end of each year were held by the same shareholders.
(a) 98.
(b) 99.
(c) 50.
(d) 90.

Short Answer Questions

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

2. Buffett managed by ________-related business principles, according to the book.

3. Buffett and Munger bought _________ companies the same way they might buy private companies.

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

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

(see the answer keys)

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