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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. Berkshire's consolidated statements met outside __________, according to the book.
(a) Standards.
(b) Values.
(c) Movements.
(d) Requirements.

2. Information helped investors see the likelihood of a company meeting future __________.
(a) Obligations.
(b) Promises.
(c) Mergers.
(d) Stock prices.

3. _________ was spurious, to Buffett, compared to depreciation charges for deteriorating assets.
(a) Stock market value.
(b) Annual reporting.
(c) Amortization.
(d) Acquisition investment.

4. Businesses must recognize present value _______ for post-retirement health benefits, according to Buffett.
(a) Concerns.
(b) Charts.
(c) Reporting.
(d) Liability.

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

Short Answer Questions

1. Berkshire management's goal was to acquire and to retain high quality __________.

2. Pooling overcame the deficiency of ____________ amortization in a merger, which was really a purchase.

3. The different classes of stock allow _______ investors to still have value for the money they can spend.

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. The partners were committed to providing and presenting a _______ business and ownership philosophy.

Short Essay Questions

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

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

3. What were the two categories of most interest for Munger and Buffett when they wanted to add to their holdings?

4. How did Buffett avoid diluting share value to existing shareholders?

5. What were the three main thing that shareholders always knew about Munger and Buffett?

6. What was done in order to minimize any loss from accounting adjustments during the US Steel transactions?

7. What was the simple rule that Buffett followed when it came to exchange of stock during a merger?

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

9. What was the piece of advice from a golf pro that Buffett takes to heart in his acquisition strategy?

10. Why would a company want to repurchase their own shares, according to Buffett?

(see the answer keys)

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