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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 was the piece of advice that Buffett took to heart from the athlete?
(a) Practice makes permitted.
(b) Practice makes permanent.
(c) Practice makes perfect.
(d) Perfect makes practice.

2. Berkshire Hathaway's insurance companies maintained how many permanent common stock holdings?
(a) Four.
(b) Five.
(c) Ten.
(d) Three.

3. Berkshire's board included a controlling ________, in which other board members could persuade others to make changes.
(a) Competitor.
(b) Owner.
(c) Shareholder.
(d) Outsider.

4. Confusing ________ requirements were offset by the partners' willingness to report look-through earnings.
(a) Stock.
(b) Market.
(c) Tax.
(d) Accounting.

5. Berkshire was a ________ corporation, as it was described in this section of the book.
(a) Shared.
(b) Public.
(c) Co-owned.
(d) Private.

Short Answer Questions

1. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?

2. Below investment grade bonds are generally called ________, since they are able to be transformed.

3. Buffett followed the simple rule that the same amount of intrinsic business value must be exchanged with each ________ transaction.

4. The intrinsic business value goal was reached by ________, preferably 100% ownership of diverse business firms generating cash and above-average returns on capital.

5. What was the name of the bond holdings that Buffett added to Berkshire in 1989?

(see the answer key)

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