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This quiz consists of 5 multiple choice and 5 short answer questions through Common Stock.

Multiple Choice Questions

1. Berkshire was a ________ corporation, as it was described in this section of the book.
(a) Public.
(b) Co-owned.
(c) Private.
(d) Shared.

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

3. Buffett's wealth was solely in _________ stock, investing and reinvesting dividends on its proportional increase per share market value over time.
(a) Berkshire.
(b) GEICO.
(c) Wells Fargo.
(d) Coca-Cola.

4. Buffett and Munger also followed the idea of minimal use of _______ and leverage, helping to create solid investments.
(a) Recovery.
(b) Debt.
(c) Consolidation.
(d) Divestment.

5. Buffett is proud that ____% of the shares outstanding at the end of each year were held by the same shareholders.
(a) 50.
(b) 90.
(c) 99.
(d) 98.

Short Answer Questions

1. What did a bondholder have to do with their bond if they decided to cash it in early?

2. Buffett and Munger saw themselves as general _______ responsible to other shareholders.

3. On the other hand, a zero bond may not require _________, but can be satisfied with pay in kind bonds.

4. Whose approach did other companies try to use in order to emulate Berkshire?

5. How many shares each did the shareholders of the company have to have in order to be listed on the exchange?

(see the answer key)

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