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

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

3. What was the value of the shares of the company that Buffett and his partner purchased thirty years after its purchase?
(a) $25,000 per share.
(b) $15,000 per share.
(c) $40,000 per share.
(d) $10,000 per share.

4. The margin of ________ was the cornerstone of investment success, according to Graham.
(a) Error.
(b) Risk.
(c) Reward.
(d) Safety.

5. Munger and Buffett act like ________ when it comes to considering the economic prospects of the businesses they buy.
(a) Bankers.
(b) Kids.
(c) Business analysts.
(d) Stock traders.

Short Answer Questions

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

2. Most Berkshire _______ had their net worth invested primarily in the company.

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

4. Buffett's long term economic goal was to maximize per share _________ value of Berkshire stock by owning a diversified group of businesses.

5. Buffett and Munger also followed the idea of minimal use of _______ and leverage, helping to create solid investments.

(see the answer key)

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