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This quiz consists of 5 multiple choice and 5 short answer questions through Mergers and Acquisitions.

Multiple Choice Questions

1. What is NOT one of the three excuses often given by an overpaying buyer, according to the book?
(a) The buyer must grow.
(b) Will be worth less in the future.
(c) Will be worth more in the future.
(d) Buyer's stock is undervalued.

2. Buffett and Munger both opposed any selective ________ and predictive growth rates from the CEOs who reported them.
(a) Strategies.
(b) Truth.
(c) Disclosure.
(d) Purchases.

3. The intrinsic business value goal was reached by ________, preferably 100% ownership of diverse business firms generating cash and above-average returns on capital.
(a) Passive.
(b) Direct.
(c) Indirect.
(d) Prominent.

4. The long-term economic goal was to maximize per-share average annual rate of gain at ______% of the intrinsic business value.
(a) 12.
(b) 50.
(c) 20.
(d) 15.

5. What did Berkshire do in the case of the zero-coupon bonds? They deducted ______ with no cash paid out.
(a) Length of time to cash it out.
(b) Interest.
(c) Value.
(d) Shares.

Short Answer Questions

1. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.

2. Buffett admitted that issuing ________ in mergers cost shareholders money, according to the book.

3. How many owner-related business principles were listed in this section of the book by Buffett?

4. Buffett thought that any CEO who set earning targets and forecasts might also take ______ with accounting measures.

5. What was the one thing that Munger and Buffett would not address in their question sessions?

(see the answer key)

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