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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?
(a) USAir.
(b) Champion.
(c) Wal-Mart.
(d) Salomon.

2. Who did Buffett authorize to use the essays in the book to popularize the teachings and Buffett's own implementation of the teachings?
(a) Munger.
(b) No one.
(c) Cunningham.
(d) Smith.

3. Preferred stock is considered with _________ that Munger and Buffett like, admire, and trust.
(a) Values.
(b) Products.
(c) History.
(d) Management.

4. What was the title of Buffett's partner in the company they shared?
(a) CEO.
(b) Chairman.
(c) Vice President.
(d) Vice-Chairman.

5. What was coined as the term for the amount of undiscovered embezzlement?
(a) Bonding.
(b) Embezzling.
(c) Bezz.
(d) Bezzle.

6. The $70B enterprise that Buffett and his partner buy includes GEICO and ________ corporation.
(a) General Mills.
(b) Apple.
(c) GE Re.
(d) Microsoft.

7. Preferred firms must pay returns above ______ investments and be compatible with management.
(a) Past.
(b) Future.
(c) Fixed-income.
(d) Mr. Market.

8. Buffett criticizes __________ market theory as be does not believe it to be a truth.
(a) Eradicant.
(b) Effective.
(c) Efficient.
(d) Erasing.

9. _________ percentage ownership was acquired when the market presented opportunities, according to the book.
(a) More.
(b) Greater.
(c) Lesser.
(d) Beholden.

10. Half of all major American companies match __________ donations of directors.
(a) Stock.
(b) Worker.
(c) Market.
(d) Charitable.

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

12. Buffett believed that many annual ________ were a waste of time for the shareholders and the management.
(a) Updates.
(b) Reports.
(c) Charts.
(d) Meetings.

13. Buffett thought that any CEO who set earning targets and forecasts might also take ______ with accounting measures.
(a) Less than legal strategies.
(b) Pride.
(c) Risks.
(d) Carelessness.

14. What was the name of the bond holdings that Buffett added to Berkshire in 1989?
(a) RJR Nabisco.
(b) Arrowhead.
(c) General Mills.
(d) Pepsi.

15. Buffett and Munger saw themselves as general _______ responsible to other shareholders.
(a) Managers.
(b) Partners.
(c) Professors.
(d) Guides.

Short Answer Questions

1. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.

2. The bonds that Buffett decides to buy in 1989 were thought to be ________, but turn out to be fallen angels.

3. Popular theory at the time said that the market was totally efficient at _________ investment.

4. Buffett and his partner preferred to buy a company at a fair price at _______% interest.

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."

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