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

Multiple Choice Questions

1. Which business did Munger and Buffett decide to close, despite their best efforts?
(a) None.
(b) GEICO.
(c) Textile.
(d) Coca-Cola.

2. What were the name of the bonds that Buffett seeks to promote through Berkshire?
(a) None.
(b) Angel.
(c) Zero-coupon.
(d) Junk.

3. How many owner-related business principles were listed in this section of the book by Buffett?
(a) 7.
(b) 14.
(c) 10.
(d) 25.

4. _________ percentage ownership was acquired when the market presented opportunities, according to the book.
(a) Lesser.
(b) Greater.
(c) More.
(d) Beholden.

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

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

7. When did Berkshire Hathaway begin as a textile company?
(a) Early 1800s.
(b) 1956.
(c) 1967.
(d) Early 1900s.

8. What was the name of the bond holdings that Buffett added to Berkshire in 1989?
(a) Arrowhead.
(b) RJR Nabisco.
(c) General Mills.
(d) Pepsi.

9. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.
(a) Life.
(b) Friends and family.
(c) A few years.
(d) The time before retirement.

10. Buffett's criteria measured _________ expectations of the highest after-tax returns to maximize net worth in the long run.
(a) Mathematical.
(b) Accounting.
(c) Emotional.
(d) Probable.

11. Buffett and his partner preferred to buy a company at a fair price at _______% interest.
(a) 99.
(b) 100.
(c) 49.
(d) 50.

12. Popular theory at the time said that the market was totally efficient at _________ investment.
(a) Purchasing.
(b) Pricing.
(c) Value.
(d) Scattered.

13. Berkshire Hathaway's insurance companies maintained how many permanent common stock holdings?
(a) Ten.
(b) Five.
(c) Three.
(d) Four.

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

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

Short Answer Questions

1. What did Berkshire do in the case of the zero-coupon bonds? They deducted ______ with no cash paid out.

2. Buffett and Munger do not check _________'s manic depressive daily price quotes to validate their investment.

3. Buffett's wealth was solely in _________ stock, investing and reinvesting dividends on its proportional increase per share market value over time.

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

5. Buffett and Munger bought _________ companies the same way they might buy private companies.

(see the answer keys)

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