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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 admitted that issuing ________ in mergers cost shareholders money, according to the book.
(a) Bills.
(b) Bonds.
(c) Announcements.
(d) Stock.

2. Buffett started to buy _____ businesses at good prices instead of buying good businesses at fair prices.
(a) True.
(b) Good.
(c) Valuable.
(d) Fair.

3. Buffett noted that a CEO had no direct ______ or clear standards of performance, making even under performing ones able to continue working.
(a) Workers.
(b) Responsibilities.
(c) Supervisor.
(d) Authority.

4. Buffett's ______ years of experience cause him to think that efficient times in the market do not constitute an efficient market.
(a) 15.
(b) 63.
(c) 30.
(d) 50.

5. Buffett stated that his position with any stock repurchase does not imply acceptance of _______, which he calls extortion.
(a) Redmail.
(b) Blue chip mail.
(c) Greenmail.
(d) Blackmail.

Short Answer Questions

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

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

3. Buffett and Munger recapitalize into Class A and _____ non-voting shares to offer a lower trading price.

4. A purchased firm might have _______ that increases in value over time by the amount of inflation and successful operating results.

5. Preferred stock is considered with _________ that Munger and Buffett like, admire, and trust.

(see the answer key)

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