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This quiz consists of 5 multiple choice and 5 short answer questions through Corporate Finance and Investing.

Multiple Choice Questions

1. The long-term economic goal was to maximize per-share average annual rate of gain at ______% of the intrinsic business value.
(a) 50.
(b) 15.
(c) 12.
(d) 20.

2. Keynes stated: "The right method of investment is to put fairly large sums of money into enterprises which one thinks one knows something about and in the ________ of which one thoroughly believes."
(a) Product.
(b) Philosophy.
(c) Management.
(d) Intrinsic value.

3. A CEO unlikely to dispose of his successful operating business may sell profitable stock investments to redeploy _________.
(a) Interest.
(b) Dividends.
(c) Nothing.
(d) Capital.

4. Berkshire might evolve into a _______ form of board situation, upon Buffett's death, according to the book.
(a) Second.
(b) Fourth.
(c) Dissolved.
(d) Third.

5. How many primary holdings were permanent in the time of Buffett and Munger?
(a) Four.
(b) Three.
(c) One.
(d) Two.

Short Answer Questions

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

2. The board was ultimately responsible for any _______'s performance in the companies they held.

3. What was the initial book value of the company that Buffett and his partner acquired in 1964?

4. _________ percentage ownership was acquired when the market presented opportunities, according to the book.

5. Berkshire's board included a controlling ________, in which other board members could persuade others to make changes.

(see the answer key)

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