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This quiz consists of 5 multiple choice and 5 short answer questions through Accounting and Valuation.

Multiple Choice Questions

1. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.
(a) Checking.
(b) Stock.
(c) Bond.
(d) Mortgage.

2. The margin of ________ was the cornerstone of investment success, according to Graham.
(a) Safety.
(b) Reward.
(c) Error.
(d) Risk.

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

4. The bonds that Buffett decides to buy in 1989 were thought to be ________, but turn out to be fallen angels.
(a) Meaningless.
(b) Junk.
(c) Priceless.
(d) Evil.

5. Warrants exercised for a penny par add ________ to credit capital surplus, according to the book.
(a) $19.99.
(b) $29.99.
(c) $49.99
(d) $39.99

Short Answer Questions

1. Many stocks had a _______, like Coca-Cola, but none have the same market share.

2. Alternative investments were considered for __________ high quality investments when a preferable business could not be located.

3. What was the title of Buffett in relation to his company?

4. In the past, the distinction between economic and accounting goodwill was insignificant when Buffett sought firms with tangible _______, rather than firms relying on economic goodwill.

5. What was the one thing that Munger and Buffett would not address in their question sessions?

(see the answer key)

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