View a FREE sample

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

Multiple Choice Questions

1. Buffett did not expand, borrow, or sell unless Berkshire received as much _________ as it gave.
(a) Power.
(b) Value.
(c) Dividends.
(d) Promise.

2. Buffett criticizes __________ market theory as be does not believe it to be a truth.
(a) Effective.
(b) Efficient.
(c) Erasing.
(d) Eradicant.

3. How many shareholders did Munger and Buffett pledge to provide fair and simultaneous reporting to?
(a) 10.
(b) 300,000.
(c) 15,000.
(d) 50%.

4. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?
(a) Wal-Mart.
(b) USAir.
(c) Salomon.
(d) Champion.

5. Which of the partners had 99% of their net worth concentrated in Berkshire stock?
(a) Both.
(b) Neither.
(c) Munger.
(d) Buffett.

6. Buffett managed by ________-related business principles, according to the book.
(a) Owner.
(b) Business.
(c) Stock.
(d) Math.

7. What was the name of Warren Buffett's partner in the company they shared?
(a) Lloyd Munger.
(b) Steve Jobs.
(c) Bill Gates.
(d) Charlie Munger.

8. A bond is _______ with regular payment of interest and repayment of principle.
(a) A loan.
(b) Nothing.
(c) Debt.
(d) A promise.

9. Confusing ________ requirements were offset by the partners' willingness to report look-through earnings.
(a) Accounting.
(b) Tax.
(c) Market.
(d) Stock.

10. What was the value of the shares of the company that Buffett and his partner purchased thirty years after its purchase?
(a) $15,000 per share.
(b) $10,000 per share.
(c) $25,000 per share.
(d) $40,000 per share.

11. Berkshire might evolve into a _______ form of board situation, upon Buffett's death, according to the book.
(a) Dissolved.
(b) Fourth.
(c) Third.
(d) Second.

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

13. The permanent holdings at Berkshire were those that Buffett and Munger decided to keep, no matter what the _________ offered.
(a) Value.
(b) Price.
(c) Name.
(d) Options.

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

15. Munger and Buffett act like ________ when it comes to considering the economic prospects of the businesses they buy.
(a) Bankers.
(b) Kids.
(c) Business analysts.
(d) Stock traders.

Short Answer Questions

1. On the other hand, a zero bond may not require _________, but can be satisfied with pay in kind bonds.

2. Who was the financial mentor that Buffett relied upon for his teachings and lessons about the way to do business?

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

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

5. What was the name of the company that Buffett and Munger bought in 1973?

(see the answer keys)

This section contains 409 words (approx. 2 pages at 300 words per page) View a FREE sample