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

Multiple Choice Questions

1. Buffett and Munger described the acquisition process as being akin to finding a ________.
(a) Spouse.
(b) Gold mine.
(c) Promised land.
(d) New toy.

2. Buffett made distinctions in ________ policy to account or differences in earnings, according to the book.
(a) Market.
(b) Share.
(c) Dividend.
(d) Ownership.

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) Indirect.
(b) Prominent.
(c) Direct.
(d) Passive.

4. Berkshire's long-term investment strategy to buy and to hold _______ for the long term was something that was comfortable to them.
(a) Investments.
(b) Decisions.
(c) Buildings.
(d) Stockholders.

5. Buffett managed by ________-related business principles, according to the book.
(a) Stock.
(b) Business.
(c) Math.
(d) Owner.

Short Answer Questions

1. A __________ was something that Buffett and Munger believed was valuable to inform businesses owners of the year's business growth.

2. The partners considered a lesser interest if the ________ price was less than what it would be for 100%.

3. LBO operators benefitted from the use of ________ to reshuffle business, risk little of their own money to gain high fees, etc.

4. Accounting for the purchase of a business required allocating the ________ first to the fair value of net assets.

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

(see the answer key)

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