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

2. The common stock par value was reduced to _________, according to the book.
(a) One quarter.
(b) One cent.
(c) One dollar.
(d) One dime.

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

4. Buffett made distinctions in ________ policy to account or differences in earnings, according to the book.
(a) Share.
(b) Ownership.
(c) Dividend.
(d) Market.

5. The partners were interested firms that are adapted to ______ times that could readily increase prices and scale up to a large volume with more capital.
(a) Recession.
(b) Inflationary.
(c) Aggressive.
(d) Bloated.

Short Answer Questions

1. Buffett started to buy _____ businesses at good prices instead of buying good businesses at fair prices.

2. What kind of pro told Buffett the piece of information that helped to guide them on the field?

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

4. Buffett and Munger recapitalize into Class A and _____ non-voting shares to offer a lower trading price.

5. Options were often ______ at exercise which made them more expensive than publicly traded options.

Short Essay Questions

1. What was the first step in the US Steel fictional accounting process?

2. What was done in order to minimize any loss from accounting adjustments during the US Steel transactions?

3. What did Buffett try to do in order to avoid problems with the two contagious diseases in the investment community?

4. What were the two super contagious diseases that could spread in the investment community?

5. What were the three main thing that shareholders always knew about Munger and Buffett?

6. What threatened the global competitiveness of major American industries, according to the book?

7. What was the simple rule that Buffett followed when it came to exchange of stock during a merger?

8. What did Buffett say should happen to some earnings in dividends?

9. What question emerged during the merger between Berkshire and Blue Chip in 1983?

10. What could Berkshire shareholders be assured of, according to Buffett in the book?

(see the answer keys)

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