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This quiz consists of 5 multiple choice and 5 short answer questions through Accounting and Valuation.

Multiple Choice Questions

1. The partners were interested firms that are adapted to ______ times that could readily increase prices and scale up to a large volume with more capital.
(a) Aggressive.
(b) Inflationary.
(c) Bloated.
(d) Recession.

2. Buffett criticizes __________ market theory as be does not believe it to be a truth.
(a) Effective.
(b) Efficient.
(c) Erasing.
(d) Eradicant.

3. What was the initial book value of the company that Buffett and his partner acquired in 1964?
(a) $10.67.
(b) $35.00
(c) $47.01.
(d) $19.46.

4. Berkshire management's goal was to acquire and to retain high quality __________.
(a) marketability.
(b) Workers.
(c) Shareholders.
(d) Management.

5. The bonds that Buffett decides to buy in 1989 were thought to be ________, but turn out to be fallen angels.
(a) Junk.
(b) Meaningless.
(c) Evil.
(d) Priceless.

Short Answer Questions

1. Buffett realized that it was helpful to be _________ when others were fearful in the market.

2. ________ earnings were the reporting of income of one company that owns another.

3. Warrants exercised for a penny par add ________ to credit capital surplus, according to the book.

4. Buffett and Munger now believed that the substantial economic _________ far exceeded the book value of Berkshire.

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

(see the answer key)

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