View a FREE sample

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

Multiple Choice Questions

1. How many shares each did the shareholders of the company have to have in order to be listed on the exchange?
(a) 100.
(b) 1000.
(c) 200.
(d) 500.

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

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

4. Buffett and Munger believed that marketability and __________ were two terms that increased the likelihood of turnover.
(a) Possibility.
(b) Stability.
(c) Liquidity.
(d) Fluidity.

5. A purchased firm might have _______ that increases in value over time by the amount of inflation and successful operating results.
(a) Stock goodwill.
(b) Money goodwill.
(c) Operating goodwill.
(d) Economic goodwill.

Short Answer Questions

1. The partners were committed to providing and presenting a _______ business and ownership philosophy.

2. Buffett and Munger described the acquisition process as being akin to finding a ________.

3. The partners were also interested in firms that had extraordinary ________ talent exhibiting skillful executive achievement.

4. The satire talked about charging off ________ value to negative one million dollars so the company could convert depreciation cost to annual appreciation gain.

5. The different classes of stock allow _______ investors to still have value for the money they can spend.

Short Essay Questions

1. What was the first step in the US Steel fictional accounting process?

2. What was the strategy that Buffett employed in order to acquire businesses, after learning the lesson from the golf pro?

3. What was the difference between the purchase and the pooling transaction?

4. How did Buffett avoid diluting share value to existing shareholders?

5. To what other experience did Buffett compare the process of acquiring a business?

6. What were the two categories of most interest for Munger and Buffett when they wanted to add to their holdings?

7. What was the result of information that is necessary to report to an investor or shareholder?

8. What could Berkshire shareholders be assured of, according to Buffett in the book?

9. What was the piece of advice from a golf pro that Buffett takes to heart in his acquisition strategy?

10. What were the two super contagious diseases that could spread in the investment community?

(see the answer keys)

This section contains 581 words (approx. 2 pages at 300 words per page) View a FREE sample