|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. The purchase of the company listed in #49 was influenced by whose investing principles?
(a) Warren Buffett.
(b) Ben Graham.
(c) No one's.
(d) Charlie Munger.
2. What was the name of the bond holdings that Buffett added to Berkshire in 1989?
(b) RJR Nabisco.
(c) General Mills.
3. Buffett's ______ years of experience cause him to think that efficient times in the market do not constitute an efficient market.
4. Buffett and Munger invested based on company operating results and not on ____________.
(a) The stock market.
(b) Profit margins.
(c) Price quotes.
(d) Shareholder opinion.
5. Buffett and Munger promised to provide sufficient additional _______ to evaluate true results.
Short Answer Questions
1. The intrinsic business value goal was reached by ________, preferably 100% ownership of diverse business firms generating cash and above-average returns on capital.
2. Buffett and Munger do not check _________'s manic depressive daily price quotes to validate their investment.
3. Confusing ________ requirements were offset by the partners' willingness to report look-through earnings.
4. What were the name of the bonds that were issued during WWI?
5. In some cases, the benefits of partial ownership earnings may far outweigh the ________ acquisition cost.
Short Essay Questions
1. What is the content of this book often used for, according to the author?
2. What was the main problem with the idea of efficient market theory, according to Buffett?
3. What happened as the result of Buffett following the advice of Ben Graham and David Dodd?
4. What did Buffett fear about investing in companies that were located in California?
5. 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?
6. How did Buffett begin to promote the zero-coupon bonds from Berkshire, though it was complicated to do so?
7. What was the purpose of the fourteen owner-related business principles that Buffett lists in the book?
8. How did Buffett seek to define a corporation as a mechanism? What exactly did this mean?
9. What did Buffett and Munger prefer to do when they invested in a company?
10. What was listed as the difference between a fallen angel and a junk bond?
This section contains 594 words
(approx. 2 pages at 300 words per page)