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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. How many shares each did the shareholders of the company have to have in order to be listed on the exchange?
(a) 500.
(b) 100.
(c) 200.
(d) 1000.

2. Buffett was often frustrated with _________, even though it was valuable for business practices.
(a) GAAP.
(b) GLAT.
(c) GAAT.
(d) GLAD.

3. Buffett and Munger continue to offer _______ for value trade in the acquisition process, as it seems fair to all parties.
(a) Value.
(b) Benefit.
(c) Choice.
(d) Truth.

4. The satire talked about charging off ________ value to negative one million dollars so the company could convert depreciation cost to annual appreciation gain.
(a) Promised.
(b) Fixed assets.
(c) Shareholders.
(d) Variable assets.

5. The question of an exchange of stock arose in 1983 during the merger of Berkshire and ____________.
(a) Blue Note.
(b) Blue Chip.
(c) Wal-Mart.
(d) Coca-Cola.

Short Answer Questions

1. During what year were the Berkshire shares to be traded on the New York Stock Exchange?

2. Options were often ______ at exercise which made them more expensive than publicly traded options.

3. The NYSE listing for Berkshire was thought to reduce _______ for shareholders by ensuring a narrow market maker spread.

4. What was NOT one of the three tax-free gifting tactics that Buffett suggested to shareholders?

5. The goal of the partners was to maximize the real economic benefits, not just the number of ___________.

Short Essay Questions

1. What did Buffett want to do with the Berkshire stock on the NYSE?

2. What did Buffett expect to owners of stock to do when he creates a principle that earnings should be retained to the extent each retained dollar creates at least one dollar of market value for owners?

3. What was the expected benefit for the Berkshire NYSE listing, according to the book?

4. What question emerged during the merger between Berkshire and Blue Chip in 1983?

5. What could Berkshire shareholders be assured of, according to Buffett in the book?

6. What did Buffett prefer in trading that allowed for more benefits to long-term owners of stock?

7. What did Buffett try to do in order to avoid problems with the two contagious diseases in the investment community?

8. Why did many executives argue about the costs of stock options and why they should be ignored?

9. What was the strategy that Buffett employed in order to acquire businesses, after learning the lesson from the golf pro?

10. What were the two super contagious diseases that could spread in the investment community?

(see the answer keys)

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