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

Multiple Choice Questions

1. Alternative investments were considered for __________ high quality investments when a preferable business could not be located.
(a) Short-term.
(b) Basic.
(c) Future.
(d) Long-term.

2. Preferred firms must pay returns above ______ investments and be compatible with management.
(a) Future.
(b) Fixed-income.
(c) Past.
(d) Mr. Market.

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

4. Berkshire's board included a controlling ________, in which other board members could persuade others to make changes.
(a) Outsider.
(b) Owner.
(c) Shareholder.
(d) Competitor.

5. The intrinsic business value goal was reached by ________, preferably 100% ownership of diverse business firms generating cash and above-average returns on capital.
(a) Prominent.
(b) Direct.
(c) Indirect.
(d) Passive.

Short Answer Questions

1. Buffett disliked _________ because of its leverage, according to the book.

2. Buffett thought that any CEO who set earning targets and forecasts might also take ______ with accounting measures.

3. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.

4. Who did Buffett authorize to use the essays in the book to popularize the teachings and Buffett's own implementation of the teachings?

5. Buffett did not expand, borrow, or sell unless Berkshire received as much _________ as it gave.

(see the answer key)

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