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This quiz consists of 5 multiple choice and 5 short answer questions through Corporate Finance and Investing.

Multiple Choice Questions

1. In some cases, the benefits of partial ownership earnings may far outweigh the ________ acquisition cost.
(a) Market.
(b) Fees and.
(c) Per-share.
(d) Value.

2. The market was considered a business partner with incurable _______ problems, according to the book.
(a) Spiritual.
(b) Emotional.
(c) Banking.
(d) Investment.

3. What was NOT one of the elements listed in the elements of arbitrage in the book?
(a) Length of time money is committed.
(b) Likelihood that money is committed.
(c) Expected internal action.
(d) Change a competing event occurs.

4. The permanent holdings at Berkshire were those that Buffett and Munger decided to keep, no matter what the _________ offered.
(a) Options.
(b) Name.
(c) Value.
(d) Price.

5. Buffett and Munger bought _________ companies the same way they might buy private companies.
(a) Small.
(b) Large.
(c) Public.
(d) Corporate.

Short Answer Questions

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

2. Munger and Buffett act like ________ when it comes to considering the economic prospects of the businesses they buy.

3. Popular theory at the time said that the market was totally efficient at _________ investment.

4. Half of all major American companies match __________ donations of directors.

5. The current value of the company Buffett and his partner bought showed that they understated its current ________ value.

(see the answer key)

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