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. Generally, earnings were reported when classified by a company as more than _______ owned.
(a) 25%.
(b) 50%.
(c) 99%.
(d) 10%.

2. Buffett and Munger run the business so that all ___________ gain proportionately.
(a) Lending agencies.
(b) Shareholders.
(c) Banks.
(d) Companies.

3. How many shareholders did a business that wanted to be on the NYSE have to have?
(a) 100.
(b) 2000.
(c) 5000.
(d) 10,000.

4. The satire talked about charging off ________ value to negative one million dollars so the company could convert depreciation cost to annual appreciation gain.
(a) Shareholders.
(b) Promised.
(c) Fixed assets.
(d) Variable assets.

5. A company might consider repurchasing _______ when it has available funds that are above long-term needs.
(a) Shares.
(b) Bonds.
(c) Fallen angels.
(d) Bills.

Short Answer Questions

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

2. Warrants exercised for a penny par add ________ to credit capital surplus, according to the book.

3. Berkshire's consolidated statements met outside __________, according to the book.

4. What was NOT one of the three tax-free gifting tactics that Buffett suggested to shareholders?

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

Short Essay Questions

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

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

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

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

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

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

7. What did Buffett want to do with the Berkshire stock on the NYSE?

8. What happened as the result of the fictional accounting actions by US Steel?

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

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

(see the answer keys)

This section contains 542 words (approx. 2 pages at 300 words per page) View a FREE sample