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This quiz consists of 5 multiple choice and 5 short answer questions through Mergers and Acquisitions.

Multiple Choice Questions

1. Which business did Munger and Buffett decide to close, despite their best efforts?
(a) None.
(b) GEICO.
(c) Textile.
(d) Coca-Cola.

2. Which state was Buffett worried about in terms of its ability to create good investments for his company?
(a) Illinois.
(b) Alabama.
(c) California.
(d) Hawaii.

3. Buffett proposed that earnings should be retained to the extent each retained dollar creates at least ________ of market value for owners.
(a) Twenty dollars.
(b) Five dollars.
(c) Ten dollars.
(d) One dollar.

4. Any new investment must use a lot of large amounts of _________, according to the book.
(a) Management.
(b) Meetings.
(c) Capital.
(d) Energy.

5. The NYSE listing for Berkshire was thought to reduce _______ for shareholders by ensuring a narrow market maker spread.
(a) Transaction costs.
(b) Variance.
(c) Price of stock.
(d) Instability.

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 continue to offer _______ for value trade in the acquisition process, as it seems fair to all parties.

3. Buffett's long term economic goal was to maximize per share _________ value of Berkshire stock by owning a diversified group of businesses.

4. The partners were also interested in firms that had extraordinary ________ talent exhibiting skillful executive achievement.

5. 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."

(see the answer key)

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