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This quiz consists of 5 multiple choice and 5 short answer questions through Common Stock.

Multiple Choice Questions

1. Who was the financial mentor that Buffett relied upon for his teachings and lessons about the way to do business?
(a) Ben Graham.
(b) Charlie Munger.
(c) Himself.
(d) No one.

2. Buffett noted that a CEO had no direct ______ or clear standards of performance, making even under performing ones able to continue working.
(a) Supervisor.
(b) Responsibilities.
(c) Workers.
(d) Authority.

3. Buffett and Munger invested based on company operating results and not on ____________.
(a) Profit margins.
(b) Shareholder opinion.
(c) The stock market.
(d) Price quotes.

4. The board was ultimately responsible for any _______'s performance in the companies they held.
(a) Market.
(b) Worker.
(c) CEO.
(d) Shareholder.

5. Buffett proposed that earnings should be retained to the extent each retained dollar creates at least ________ of market value for owners.
(a) Five dollars.
(b) Ten dollars.
(c) Twenty dollars.
(d) One dollar.

Short Answer Questions

1. Ben Graham personified the market with the name ___________, to give it a more human side.

2. Berkshire's board included a controlling ________, in which other board members could persuade others to make changes.

3. Buffett and Munger saw themselves as general _______ responsible to other shareholders.

4. What company did Buffett acquire in 1964, which he eventually grew into a large holding company?

5. Value came from a fixed-income feature to set minimum value with __________ as a bonus.

(see the answer key)

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