|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. A stock _______ might attractive investors unlike their current investor group which might downgrade the quality of the shares.
2. Major business activities grouped together aided _____ by providing data in a more useful form.
(b) Future goal setting.
(d) Stock prices.
3. Accounting for the purchase of a business required allocating the ________ first to the fair value of net assets.
(b) Purchase price.
(c) Projected price.
(d) Stock market.
4. Options were often ______ at exercise which made them more expensive than publicly traded options.
5. Buffett and Munger run the business so that all ___________ gain proportionately.
(d) Lending agencies.
6. Some CEOs think that manipulating __________ could encourage the highest stock price available.
7. Berkshire is too well developed and managed to add intrinsic business value with new ___________ paid for with common stock.
8. What was NOT one of the three tax-free gifting tactics that Buffett suggested to shareholders?
(a) Partnership form.
(b) Will gifting.
(c) Bargain sale.
(d) Married couple gifting.
9. ________ earnings were the reporting of income of one company that owns another.
(b) Look through.
10. Inventory was carried at _______ value to minimize any loss from accounting adjustments in addition to other satirical accounting action.
11. Generally, earnings were reported when classified by a company as more than _______ owned.
12. Berkshire shareholders can be assured that the company _______ statements are accurate.
13. Buffett avoids _________ share value to existing shareholders by true value for value merger, using stock as inflated currency.
14. Owners were expected to conclude that retained _______ were better left in the corporation for reinvestment at a higher rate than paid out as dividends.
15. Buffett followed the simple rule that the same amount of intrinsic business value must be exchanged with each ________ transaction.
Short Answer Questions
1. Information helped investors see the likelihood of a company meeting future __________.
2. Buffett and Munger believed that marketability and __________ were two terms that increased the likelihood of turnover.
3. Businesses must recognize present value _______ for post-retirement health benefits, according to Buffett.
4. How many shareholders did a business that wanted to be on the NYSE have to have?
5. Buffett realized that it was helpful to be _________ when others were fearful in the market.
This section contains 389 words
(approx. 2 pages at 300 words per page)