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

2. If the buyer's stock was sold at less than intrinsic value, he bought with undervalued _________ and would suffer an unequal exchange.
(a) Markets.
(b) Companies.
(c) Currency.
(d) Dividends.

3. Buffett stated that his position with any stock repurchase does not imply acceptance of _______, which he calls extortion.
(a) Blackmail.
(b) Redmail.
(c) Greenmail.
(d) Blue chip mail.

4. In the past, the distinction between economic and accounting goodwill was insignificant when Buffett sought firms with tangible _______, rather than firms relying on economic goodwill.
(a) Assets.
(b) Shares.
(c) Outlooks.
(d) Management.

5. Buffett discussed the popularity of _________ buyouts as they had a number of different benefits to them.
(a) Averaged.
(b) Bored.
(c) Leveraged.
(d) Discussed.

Short Answer Questions

1. Buffett and Munger believed that marketability and __________ were two terms that increased the likelihood of turnover.

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

3. Buffett avoids _________ share value to existing shareholders by true value for value merger, using stock as inflated currency.

4. Buffett made distinctions in ________ policy to account or differences in earnings, according to the book.

5. In 1992, what did the Berkshire per share stock price increase past?

Short Essay Questions

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

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

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

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

5. What did Buffett prefer in trading that allowed for more benefits to long-term owners of stock?

6. What were the three main thing that shareholders always knew about Munger and Buffett?

7. What was the purpose of Buffett and Munger focusing on buying up 100% of a company and the investment must use a lot of capital?

8. Why would a company want to repurchase their own shares, according to Buffett?

9. What did Buffett admit that he used to do when seeking out new investments thirty-five years ago?

10. What did Buffett say should happen to some earnings in dividends?

(see the answer keys)

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