Q: Buffett believes a company's Selling, General, and Administrative expenses: Select one: a. Do not matter b. Should be consistently high c. Should always be less than 30% d. Should be consisently lower than their competitors Q: Buffett believes that one of the key ways of make more money is: Select one: a. To sell more products b. To have high revenues c. To spend less money d. To lay-off employees Q: In analyzing operating expenses, Buffett looks at: Select one: a. Only Selling, General and Administrative Expenses b. Only at the total operating expenses c. The expenses on a line by line basis d. Only the current year of expenses Q: Companies with a durable competitive advantage: Select one: a. Operate in a very competitive industry b. Have lower profit margins c. Have to compete by selling at a lower price d. Can price their products well above cost Q: Buffett looks for companies whose gross profit margins: Select one: a. Are the same as those of their competitors b. Are greater than 40% c. Are volatile d. Are consistently 60% and above Q: Some companies with high gross profit margins may not have a durable competitive advantage because: Select one: a. They have large research and development costs b. They don't spend a lot on selling and administrative expenses c. They have low debt d. They sell a very competitive product Q: When looking at Gross Profit Margins, Buffett believes: Select one: a. You should look for consistency for the last 10 years b. They are not important c. A lower margin is better d. They do not indicate a company's profitability Q: A company's gross profit margin: Select one: a. Can be found on the balance sheet b. Is the difference between Revenues and Cost of goods sold c. Is Gross Profit divided by Total Revenues d. Is Total Revenues divided by Gross Profit Q: In relation to the Income Statement, Buffett believes: Select one: a. Revenue is the most important number b. The source of earnings is more important than the earnings themselves c. It does not provide useful information d. The "bottom-line" is the only number that matters Q: Operating expenses: Select one: a. Can be found on a Statement of Cash Flows b. Include income tax expense c. Include depreciation expense d. Include gain and losses on sale of assets Q: Buffett believes a company's Selling, General, and Administrative expenses: Select one: a. Do not matter b. Should be consistently high c. Should always be less than 30% d. Should be consisently lower than their competitors Q: Buffett believes that one of the key ways of make more money is: Select one: a. To sell more products b. To have high revenues c. To spend less money d. To lay-off employees Q: In analyzing operating expenses, Buffett looks at: Select one: a. Only Selling, General and Administrative Expenses b. Only at the total operating expenses c. The expenses on a line by line basis d. Only the current year of expenses Q: Companies with a durable competitive advantage: Select one: a. Operate in a very competitive industry b. Have lower profit margins c. Have to compete by selling at a lower price d. Can price their products well above cost Q: Buffett looks for companies whose gross profit margins: Select one: a. Are the same as those of their competitors b. Are greater than 40% c. Are volatile d. Are consistently 60% and above Q: Some companies with high gross profit margins may not have a durable competitive advantage because: Select one: a. They have large research and development costs b. They don't spend a lot on selling and administrative expenses c. They have low debt d. They sell a very competitive product Q: When looking at Gross Profit Margins, Buffett believes: Select one: a. You should look for consistency for the last 10 years b. They are not important c. A lower margin is better d. They do not indicate a company's profitability Q: A company's gross profit margin: Select one: a. Can be found on the balance sheet b. Is the difference between Revenues and Cost of goods sold c. Is Gross Profit divided by Total Revenues d. Is Total Revenues divided by Gross Profit Q: In relation to the Income Statement, Buffett believes: Select one: a. Revenue is the most important number b. The source of earnings is more important than the earnings themselves c. It does not provide useful information d. The "bottom-line" is the only number that matters Q: Operating expenses: Select one: a. Can be found on a Statement of Cash Flows b. Include income tax expense c. Include depreciation expense d. Include gain and losses on sale of assets