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

Multiple Choice Questions

1. What was NOT one of the three tax-free gifting tactics that Buffett suggested to shareholders?
(a) Partnership form.
(b) Bargain sale.
(c) Will gifting.
(d) Married couple gifting.

2. The partners were interested firms that are adapted to ______ times that could readily increase prices and scale up to a large volume with more capital.
(a) Bloated.
(b) Aggressive.
(c) Inflationary.
(d) Recession.

3. Munger believed the _________ Berkshire paid to be acceptable for the benefits they received.
(a) Accounting fees.
(b) Treasury funds.
(c) Taxes.
(d) Court costs.

4. Major business activities grouped together aided _____ by providing data in a more useful form.
(a) Stock prices.
(b) Investments.
(c) Future goal setting.
(d) Analysis.

5. Options were often ______ at exercise which made them more expensive than publicly traded options.
(a) Presented.
(b) Re-priced.
(c) Undervalued.
(d) Moved.

6. The partners were also interested in firms that had extraordinary ________ talent exhibiting skillful executive achievement.
(a) Reports.
(b) Prices.
(c) Management.
(d) Jumps.

7. Many ended up taking Buffett and Munger ________ on faith because of the way that they reported.
(a) Past values.
(b) Presentations.
(c) Promises.
(d) Rumors.

8. The satire talked about charging off ________ value to negative one million dollars so the company could convert depreciation cost to annual appreciation gain.
(a) Fixed assets.
(b) Promised.
(c) Variable assets.
(d) Shareholders.

9. Buffett and Munger continue to offer _______ for value trade in the acquisition process, as it seems fair to all parties.
(a) Benefit.
(b) Truth.
(c) Value.
(d) Choice.

10. While Munger and Buffett were excited when they are in the process of acquiring a new business, they were also _________.
(a) Rational.
(b) Bored.
(c) Complacent.
(d) Unhurried.

11. Pooling overcame the deficiency of ____________ amortization in a merger, which was really a purchase.
(a) Peaceful.
(b) Promised.
(c) Goodwill.
(d) Projected.

12. In 1992, what did the Berkshire per share stock price increase past?
(a) $25,000.
(b) $10,000.
(c) $20,000.
(d) $30,000.

13. Buffett believed that _______ data was important to his and Munger's decision making.
(a) Accounting.
(b) Investor.
(c) Stock.
(d) Business.

14. Warrants exercised for a penny par add ________ to credit capital surplus, according to the book.
(a) $19.99.
(b) $39.99
(c) $29.99.
(d) $49.99

15. Some CEOs think that manipulating __________ could encourage the highest stock price available.
(a) Portfolios.
(b) Earnings.
(c) Reports.
(d) Mergers.

Short Answer Questions

1. Berkshire's consolidated statements met outside __________, according to the book.

2. Buffett was often frustrated with _________, even though it was valuable for business practices.

3. Buffett and Munger promise to never ________ unless they are selling at a market price well below intrinsic business value.

4. How many shareholders did a business that wanted to be on the NYSE have to have?

5. During what year were the Berkshire shares to be traded on the New York Stock Exchange?

(see the answer keys)

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