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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. A company might consider repurchasing _______ when it has available funds that are above long-term needs.

2. Buffett discussed the popularity of _________ buyouts as they had a number of different benefits to them.

3. _______ transactions only allowed stock be paid compared to a purchase in which cash or stock and cash or other valuable consideration may be paid.

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

5. While Munger and Buffett were excited when they are in the process of acquiring a new business, they were also _________.

Short Essay Questions

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

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

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

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

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

6. What did Buffett expect to owners of stock to do when he creates a principle that earnings should be retained to the extent each retained dollar creates at least one dollar of market value for owners?

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

In order to buy bonds and stock in a company, Buffett and Munger required that companies have a firm management style.

Part 1: How might you define the idea of a firm management style?

Part 2: What are some modern companies today that have a good management approach?

Part 3: Do you think a company can be a success without a strong management team?

Essay Topic 2

The textile company grew from a simple company to one that was a multi-million dollar corporation over time.

Part 1: Do you think it's the dream of all companies to become multi-million dollar companies?

Part 2: Why do you think Buffett and Munger aspired to do more with the company they had?

Part 3: Would you rather stay as one company or try to grow bigger over time?

Essay Topic 3

Buffett and Munger didn't like to split their stock, even though they were asked to do so many times.

Part 1: Why do Buffett and Munger decide not to split their stock?

Part 2: Do you think Buffett and Munger made the right decision to keep their stock?

Part 3: Do you think Munger and Buffett are fair to their shareholders?

(see the answer keys)

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