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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. The board was ultimately responsible for any _______'s performance in the companies they held.
(a) Shareholder.
(b) Market.
(c) CEO.
(d) Worker.

2. Buffett's ______ years of experience cause him to think that efficient times in the market do not constitute an efficient market.
(a) 50.
(b) 30.
(c) 15.
(d) 63.

3. What was NOT one of the elements listed in the elements of arbitrage in the book?
(a) Expected internal action.
(b) Change a competing event occurs.
(c) Length of time money is committed.
(d) Likelihood that money is committed.

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

5. Value came from a fixed-income feature to set minimum value with __________ as a bonus.
(a) A unique product.
(b) A strong management team.
(c) A good economy.
(d) Conversion.

Short Answer Questions

1. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?

2. The current value of the company Buffett and his partner bought showed that they understated its current ________ value.

3. Buffett's wealth was solely in _________ stock, investing and reinvesting dividends on its proportional increase per share market value over time.

4. Half of all major American companies match __________ donations of directors.

5. What did Berkshire do in the case of the zero-coupon bonds? They deducted ______ with no cash paid out.

Short Essay Questions

1. What did Buffett and Munger commit to providing to their 300,000 shareholders?

2. How did Buffett's criteria for buying companies and maintaining holdings help to maximize net worth in the long run?

3. What was listed as the difference between a fallen angel and a junk bond?

4. What was the concept of fallen angels, according to Buffett's lessons about investing?

5. What were some of the companies included in the purchases of Berkshire Hathaway under Munger and Buffett?

6. Where did Berkshire directors have most of their net worth invested, according to the book?

7. How did Buffett seek to define a corporation as a mechanism? What exactly did this mean?

8. What were the five different categories from which Buffett can select his investments?

9. How did Buffett and Munger buy public companies, according to the book's details?

10. What is the content of this book often used for, according to the author?

(see the answer keys)

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