2. Berkshire was most active in:
(a) door to door policy selling.
(b) promoting auto insurance.
(c) reinsurance.
(d) business insurance.

3. Who does Buffett select to run Salomon?
(a) Nicholas Brady.
(b) Deryck Maughan.
(c) JM Meriwether.
(d) Paul Mozer.

4. Which investment banking firm did Buffett invest in?
(a) Salomon.
(b) Merrill Lynch.
(c) J.P. Morgan.
(d) Smith Barney.

5. What was Buffett's annual Christmas gift to each of his children?
(a) ten shares of Berkshire stock.
(b) $10,000 the tax deductible limit on gifts to family members.
(c) anything they wanted.
(d) vacations.

6. In Congressional testimony, Buffett makes it clear that:
(a) he wanted the charges dropped.
(b) he would not cooperate with the government.
(c) he wanted the perpetrators of the crime prosecuted.
(d) he would tolerate no wrong doing at Salamon.

7. The Efficient Market Theory says that:
(a) prices reflect information.
(b) stock prices will rise.
(c) stock prices will fall.
(d) prices can be influenced.

8. Which of the following is not part of Buffett's guide to selecting stocks?
(a) doing his own market analysis.
(b) ignoring macroeconomic trends and forecasts.
(c) trading on tips.
(d) stocks within one's circle of competence.

9. Soon after Buffett arrives in New York, he learns that:
(a) the situation is more serious than he thought.
(b) the Treasury has banned Salomon from its auctions.
(c) he is voted off the board.
(d) the government dropped its investigation.

10. Who handled Berkshire's investments:
(a) Charlie Munger.
(b) his staff of fourteen traders.
(c) Buffett alone.
(d) Buffett and Bill Scott.

11. One thing that Buffett did that resulted in many people leaving the firm was to:
(a) lower the bonuses.
(b) give raises to maintain morale.
(c) move to a smaller building.
(d) cancel vacations.

12. The Efficient Market Theory was popular because it:
(a) was based on technology.
(b) proved accurate.
(c) extended the theories of Adam Smith to financial markets.
(d) was simple.

13. Buffett looked for stocks:
(a) whose value was greater than its price.
(b) that had a product he believed in.
(c) that had an attractive annual report.
(d) that was owned by people he knew.

14. What does Buffett say about the hostile takeover of Time?
(a) it was an example of the destructive tactics of the merger era.
(b) it could have been handled better.
(c) it showed how smoothly the market worked.
(d) it was a good merger.

15. Buffett appeared on:
(a) Lifestyles of the Rich and Famous.
(b) What's My Line.
(c) Johnny Carson.
(d) This is our Life.