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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What did a bondholder have to do with their bond if they decided to cash it in early?
(a) Transfer it back to the owner.
(b) Pay interest.
(c) Earn more.
(d) Nothing.

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

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

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

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

Short Answer Questions

1. _________ were often unwilling to discuss the business issues during meetings.

2. What did the zero-coupon bonds not pay to the investor in the end?

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

4. Many stocks had a _______, like Coca-Cola, but none have the same market share.

5. What were the name of the bonds that were issued during WWI?

Short Essay Questions

1. How did Buffett and Munger buy public companies, according to the book's details?

2. What was the definition of the idea of risk arbitrage, according to the book?

3. What did Buffett decide to do in order to create a meeting in which business owners would be informed about the year's business growth and development?

4. What was the concept of fallen angels, according to Buffett's lessons about investing?

5. What did Buffett and Charlie Munger do together, which led to the creation of this book?

6. What was the purpose of the fourteen owner-related business principles that Buffett lists in the book?

7. What were the five different categories from which Buffett can select his investments?

8. What did Buffett have to say about the idea of annual meetings for shareholders and other business managers?

9. What happened as the result of Buffett following the advice of Ben Graham and David Dodd?

10. Who was Mr. Market and where did Mr. Market come from, according to the book?

(see the answer keys)

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