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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. The partners considered a lesser interest if the ________ price was less than what it would be for 100%.
(a) Pro-rata.
(b) Pro-management.
(c) Pro-rate.
(d) Pro-biotic.

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

3. Buffett and Munger also followed the idea of minimal use of _______ and leverage, helping to create solid investments.
(a) Debt.
(b) Divestment.
(c) Recovery.
(d) Consolidation.

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

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

Short Answer Questions

1. The margin of ________ was the cornerstone of investment success, according to Graham.

2. What was the title of Buffett's partner in the company they shared?

3. _________ were often unwilling to discuss the business issues during meetings.

4. Below investment grade bonds are generally called ________, since they are able to be transformed.

5. Buffett and Munger saw themselves as general _______ responsible to other shareholders.

(see the answer key)

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