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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 invested based on company operating results and not on ____________.
(a) The stock market.
(b) Profit margins.
(c) Shareholder opinion.
(d) Price quotes.

2. How many shares each did the shareholders of the company have to have in order to be listed on the exchange?
(a) 1000.
(b) 200.
(c) 500.
(d) 100.

3. _________ can be foolish, according to the lessons in this chapter, foolhardy even, or just be fooling buyers and sellers.
(a) Smith.
(b) Mr. Big.
(c) Buffett.
(d) Mr. Market.

4. Buffett thought that any CEO who set earning targets and forecasts might also take ______ with accounting measures.
(a) Less than legal strategies.
(b) Carelessness.
(c) Risks.
(d) Pride.

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

Short Answer Questions

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

2. Buffett and Munger run the business so that all ___________ gain proportionately.

3. What were the name of the bonds that Buffett seeks to promote through Berkshire?

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

5. In the past, the distinction between economic and accounting goodwill was insignificant when Buffett sought firms with tangible _______, rather than firms relying on economic goodwill.

(see the answer key)

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