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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. Many stocks had a _______, like Coca-Cola, but none have the same market share.
(a) Risk.
(b) Beta.
(c) Manner.
(d) Price.

2. Berkshire's board included a controlling ________, in which other board members could persuade others to make changes.
(a) Owner.
(b) Shareholder.
(c) Outsider.
(d) Competitor.

3. Who was the financial mentor that Buffett relied upon for his teachings and lessons about the way to do business?
(a) Charlie Munger.
(b) Ben Graham.
(c) No one.
(d) Himself.

4. The content of the book was often used as a standard text at the Cardozo School of __________.
(a) Medicine.
(b) Business.
(c) Engineering.
(d) Law.

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

Short Answer Questions

1. The current value of the company Buffett and his partner bought showed that they understated its current ________ value.

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

3. Buffett's criteria measured _________ expectations of the highest after-tax returns to maximize net worth in the long run.

4. The permanent holdings at Berkshire were those that Buffett and Munger decided to keep, no matter what the _________ offered.

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

Short Essay Questions

1. Whose investing principles guided the Buffett purchase of Washington Post Company?

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

3. What was listed as the difference between a fallen angel and a junk bond?

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

5. What did Berkshire Hathaway become in the 1990s after its humble beginnings in the years before?

6. What would business contraction cause, though Buffett says this was also an opportune time for investment?

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

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

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

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

(see the answer keys)

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