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

Multiple Choice Questions

1. Berkshire management's goal was to acquire and to retain high quality __________.
(a) Management.
(b) Workers.
(c) marketability.
(d) Shareholders.

2. ___________ recognized that statements are not adequate compared to segment data that enabled control of business.
(a) Shareholders.
(b) The business students.
(c) The public.
(d) Management.

3. The partners were committed to providing and presenting a _______ business and ownership philosophy.
(a) Active.
(b) Powerful.
(c) Consistent.
(d) Long-term.

4. How many shareholders did a business that wanted to be on the NYSE have to have?
(a) 10,000.
(b) 100.
(c) 5000.
(d) 2000.

5. The partners were also interested in firms that had extraordinary ________ talent exhibiting skillful executive achievement.
(a) Prices.
(b) Management.
(c) Jumps.
(d) Reports.

6. What was NOT one of the three tax-free gifting tactics that Buffett suggested to shareholders?
(a) Married couple gifting.
(b) Partnership form.
(c) Bargain sale.
(d) Will gifting.

7. Any new investment must use a lot of large amounts of _________, according to the book.
(a) Management.
(b) Capital.
(c) Energy.
(d) Meetings.

8. The satire talked about charging off ________ value to negative one million dollars so the company could convert depreciation cost to annual appreciation gain.
(a) Fixed assets.
(b) Variable assets.
(c) Shareholders.
(d) Promised.

9. Information helped investors see the likelihood of a company meeting future __________.
(a) Obligations.
(b) Stock prices.
(c) Promises.
(d) Mergers.

10. The question of an exchange of stock arose in 1983 during the merger of Berkshire and ____________.
(a) Wal-Mart.
(b) Blue Chip.
(c) Coca-Cola.
(d) Blue Note.

11. A purchased firm might have _______ that increases in value over time by the amount of inflation and successful operating results.
(a) Economic goodwill.
(b) Operating goodwill.
(c) Stock goodwill.
(d) Money goodwill.

12. A company might consider repurchasing _______ when it has available funds that are above long-term needs.
(a) Fallen angels.
(b) Bills.
(c) Shares.
(d) Bonds.

13. Berkshire kept the business operating after the acquisition, since it would already have successful ___________.
(a) Movement.
(b) Management.
(c) Practices.
(d) Debts.

14. Main _______ changes allowed cash-basis accounting for the costs of a corporation.
(a) Valuation.
(b) Requirement.
(c) Reporting.
(d) Tax.

15. Buffett and Munger recapitalize into Class A and _____ non-voting shares to offer a lower trading price.
(a) B.
(b) C.
(c) E.
(d) D.

Short Answer Questions

1. Businesses must recognize present value _______ for post-retirement health benefits, according to Buffett.

2. What was the piece of advice that Buffett took to heart from the athlete?

3. ________ earnings were the reporting of income of one company that owns another.

4. While Munger and Buffett were excited when they are in the process of acquiring a new business, they were also _________.

5. What is NOT one of the three excuses often given by an overpaying buyer, according to the book?

(see the answer keys)

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