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This quiz consists of 5 multiple choice and 5 short answer questions through Accounting Policy and Tax Matters.

Multiple Choice Questions

1. The benefits of __________ were retained by Berkshire since it was a strong franchise.
(a) Fair market value.
(b) Tax reduction.
(c) Reporting.
(d) Shareholder meetings.

2. Buffett preferred to trade a narrow range around _________ business value to favor long-term owners.
(a) Promised.
(b) Guesstimated.
(c) Market.
(d) Intrinsic.

3. What is NOT one of the three excuses often given by an overpaying buyer, according to the book?
(a) The buyer must grow.
(b) Will be worth less in the future.
(c) Will be worth more in the future.
(d) Buyer's stock is undervalued.

4. Many stocks had a _______, like Coca-Cola, but none have the same market share.
(a) Manner.
(b) Risk.
(c) Beta.
(d) Price.

5. What was the initial book value of the company that Buffett and his partner acquired in 1964?
(a) $19.46.
(b) $47.01.
(c) $35.00
(d) $10.67.

Short Answer Questions

1. A company might consider repurchasing _______ when it has available funds that are above long-term needs.

2. What did GAAP stand for, according to the text in the book?

3. Berkshire's long-term investment strategy to buy and to hold _______ for the long term was something that was comfortable to them.

4. Keynes stated: "The right method of investment is to put fairly large sums of money into enterprises which one thinks one knows something about and in the ________ of which one thoroughly believes."

5. The goal of the partners was to maximize the real economic benefits, not just the number of ___________.

(see the answer key)

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