View a FREE sample

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

Multiple Choice Questions

1. The settlement of the public and private cases cost Salomon:
(a) $45 million.
(b) $490 million.
(c) $400 million.
(d) $125 million.

2. Buffett's annual shareholders meetings differed from those of other companies because:
(a) he refused to hold shareholder meetings.
(b) his were well attended.
(c) his were elegantly catered.
(d) he wouldn't attend his.

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

4. Why did US Air lose money after Buffett's investment?
(a) there was a strike.
(b) none of the above.
(c) the outbreak of the Persian Gulf War.
(d) their fleet was old.

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

6. Buffett's new worth was approximately:
(a) $900 million.
(b) $2.3 billion.
(c) $1.35 billion.
(d) $3.8 billion.

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

8. Which of the following companies was the object of a hostile takeover in the 1980s?
(a) General Goods.
(b) Revlon.
(c) Berkshire.
(d) Time.

9. Buffett's views on hostile takeovers included all but:
(a) they were no value creating.
(b) they involved transfers of assets.
(c) they resulted in a loss of tax dollars to society.
(d) they greatly benefited society.

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

11. How much did Buffett pay for Nebraska Furniture Mart?
(a) $25 million.
(b) $10 million.
(c) $5 million.
(d) $60 million.

12. Buffet's view of stock index futures was:
(a) they would lead to excess speculation.
(b) they should be abandoned.
(c) they would benefit the market.
(d) he relied on them.

13. What did Buffett always look at, especially in insurance?
(a) odds.
(b) growth potential.
(c) premiums.
(d) profit.

14. In Warren's view, the managers of other people's money:
(a) had to have approval for any of their actions.
(b) could act as they want.
(c) had to responsibility to others.
(d) bore a heavy burden.

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

Short Answer Questions

1. Buffett looked for stocks:

2. As a result of the stock market crash in October 1985, Berkshire:

3. What did Susie unexpectedly do at the age of forty-five?

4. Mrs. B began in the furniture business by:

5. In the 1980-84 period, insurance companies:

(see the answer keys)

This section contains 485 words (approx. 2 pages at 300 words per page) View a FREE sample