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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

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

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

3. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?
(a) Champion.
(b) Salomon.
(c) Wal-Mart.
(d) USAir.

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

5. What did Berkshire do in the case of the zero-coupon bonds? They deducted ______ with no cash paid out.
(a) Value.
(b) Shares.
(c) Interest.
(d) Length of time to cash it out.

Short Answer Questions

1. Berkshire's long-term investment strategy to buy and to hold _______ for the long term was something that was comfortable to them.

2. Buffett criticizes __________ market theory as be does not believe it to be a truth.

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

4. What was the one thing that Munger and Buffett would not address in their question sessions?

5. Who did Buffett authorize to use the essays in the book to popularize the teachings and Buffett's own implementation of the teachings?

Short Essay Questions

1. What did Berkshire Hathaway become in the 1990s after its humble beginnings in the years before?

2. What was the definition of the idea of risk arbitrage, according to the book?

3. What was the main problem with the idea of efficient market theory, according to Buffett?

4. What was the long-term economic goal of the directors investing in the Berkshire company?

5. How did Buffett and Munger buy public companies, according to the book's details?

6. What was the key principle of Ben Graham that guided the way that Buffett bought other businesses?

7. What did Buffett decide to do in order to create a meeting in which business owners would be informed about the year's business growth and development?

8. What did Buffett and Munger prefer to do when they invested in a company?

9. Who did Buffett consider to be partners with him in his business, according to the book?

10. What was listed as the difference between a fallen angel and a junk bond?

(see the answer keys)

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