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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 partners were also interested in firms that had extraordinary ________ talent exhibiting skillful executive achievement.
(a) Management.
(b) Reports.
(c) Jumps.
(d) Prices.

2. Buffett wondered that if _______ were not calculated through earnings, how could they be determined.
(a) Selloffs.
(b) Offers.
(c) Options.
(d) Mergers.

3. Buffett proposed that earnings should be retained to the extent each retained dollar creates at least ________ of market value for owners.
(a) Twenty dollars.
(b) Five dollars.
(c) One dollar.
(d) Ten dollars.

4. In 1992, what did the Berkshire per share stock price increase past?
(a) $20,000.
(b) $10,000.
(c) $25,000.
(d) $30,000.

5. Two super contagious diseases in the investment world included _______ and greed, according to the book.
(a) Ignorance.
(b) Fear.
(c) Pain.
(d) Rationality.

Short Answer Questions

1. Buffett and Munger recapitalize into Class A and _____ non-voting shares to offer a lower trading price.

2. Information helped investors see the likelihood of a company meeting future __________.

3. What kind of pro told Buffett the piece of information that helped to guide them on the field?

4. Berkshire kept the business operating after the acquisition, since it would already have successful ___________.

5. Buffett and Munger believed that investors should pay attention to business results, not __________.

Short Essay Questions

1. What was the simple rule that Buffett followed when it came to exchange of stock during a merger?

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

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

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

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

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

7. What threatened the global competitiveness of major American industries, according to the book?

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

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

10. What question emerged during the merger between Berkshire and Blue Chip in 1983?

(see the answer keys)

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