2. Why did Buffett buy into Cap Cities?
(a) the price was cheap.
(b) he was looking to diversify.
(c) it was a good deal.
(d) to infuse it with capital and to provide stability for its merger with ABC.

3. Cap Cities would use the money from Berkshire to:
(a) diversify.
(b) modernize.
(c) buy ABC.
(d) invest in the satellite business.

4. As a result of the stock market crash in October 1985, Berkshire:
(a) increased in value.
(b) was insolvent.
(c) lost one quarter of its value.
(d) lost ten percent of its value.

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

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

7. Why is finance the opposite of investing?
(a) finance is based on Efficient Market Theory.
(b) finance is based on Graham and Dodds theory.
(c) finance is the same as investing.
(d) finance describes the corporate view of fund raising.

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

9. By the 1990s, Buffett was worth:
(a) $250 million.
(b) $1 billion.
(c) $620 million.
(d) $500 million.

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

11. If Buffett made a loan to one of his children:
(a) he refused to help them.
(b) he would berate them for needing money.
(c) they had to sign a loan agreement.
(d) they were afraid to ask.

12. Warren's attitude toward leaving some money to his children changed when:
(a) Susie said she would never speak to him.
(b) the press became critical of him.
(c) he became ill.
(d) he became closer with Susie and her family when they were living in Omaha.

13. Susie's absence made life:
(a) made Warren more self-sufficient.
(b) game Warren more freedom.
(c) difficult for Warren.
(d) made Warren happier.

14. What other kind of family-owned business did Buffet buy?
(a) advertising.
(b) grocery.
(c) jewelry.
(d) another furniture store.

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