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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. The board was ultimately responsible for any _______'s performance in the companies they held.
(a) CEO.
(b) Market.
(c) Shareholder.
(d) Worker.

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

3. Buffett and Munger bought _________ companies the same way they might buy private companies.
(a) Large.
(b) Public.
(c) Small.
(d) Corporate.

4. Ben Graham personified the market with the name ___________, to give it a more human side.
(a) Mr. Big.
(b) Sir Market.
(c) Mr. Market.
(d) The Market Man.

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

Short Answer Questions

1. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.

2. A __________ was something that Buffett and Munger believed was valuable to inform businesses owners of the year's business growth.

3. The _______ doesn't feel poorer when the embezzler is getting richer.

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

5. Most Berkshire _______ had their net worth invested primarily in the company.

Short Essay Questions

1. What did Buffett and Munger prefer to do when they invested in a company?

2. What were some of the companies included in the purchases of Berkshire Hathaway under Munger and Buffett?

3. What might a CEO do if they were unlikely to dispose of their successful operating business, according to Buffett?

4. What was the main problem with the idea of efficient market theory, according to Buffett?

5. What were two of the benefits of zero-coupon bonds, as listed by Berkshire in their promotions?

6. What happened as a result of Buffett and Munger buying their holding companies at a fair rate or buying lesser interest in at the pro-rata price?

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

8. What did Buffett and Munger invest based upon, instead of price quotes?

9. What is the content of this book often used for, according to the author?

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

(see the answer keys)

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