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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

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

2. A CEO unlikely to dispose of his successful operating business may sell profitable stock investments to redeploy _________.
(a) Dividends.
(b) Interest.
(c) Capital.
(d) Nothing.

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

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

5. What did the zero-coupon bonds not pay to the investor in the end?
(a) Profit.
(b) Taxes.
(c) Current interest.
(d) Locked in interest.

6. What was the one thing that Munger and Buffett would not address in their question sessions?
(a) Nothing.
(b) Numbers.
(c) Investment strategies.
(d) Personal business.

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

8. The $70B enterprise that Buffett and his partner buy includes GEICO and ________ corporation.
(a) Microsoft.
(b) GE Re.
(c) General Mills.
(d) Apple.

9. The long-term economic goal was to maximize per-share average annual rate of gain at ______% of the intrinsic business value.
(a) 15.
(b) 12.
(c) 50.
(d) 20.

10. Substantial equity interest was NOT owned by one of the following companies.
(a) American Express.
(b) Coca-Cola.
(c) GEICO.
(d) Gillette.

11. 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."
(a) Philosophy.
(b) Intrinsic value.
(c) Management.
(d) Product.

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

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

14. What was coined as the term for the amount of undiscovered embezzlement?
(a) Bezz.
(b) Bezzle.
(c) Bonding.
(d) Embezzling.

15. Who did Buffett authorize to use the essays in the book to popularize the teachings and Buffett's own implementation of the teachings?
(a) No one.
(b) Cunningham.
(c) Munger.
(d) Smith.

Short Answer Questions

1. Ben Graham personified the market with the name ___________, to give it a more human side.

2. Buffett managed by ________-related business principles, according to the book.

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

4. _________ percentage ownership was acquired when the market presented opportunities, according to the book.

5. When did Berkshire Hathaway begin as a textile company?

(see the answer keys)

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