Based on Warren Buffett's Definition of Owner Earnings, What Are

question 30

Multiple Choice

Based on Warren Buffett's definition of owner earnings, what are the two types of investment?

• A) Investment in value- creating growth opportunities beyond the current position
• B) Investment to reduce the level of debt repayments
• C) Investment in dividends to encourage future shareholders
• D) Investment needed to permit the firm to continue to maintain its existing competitive position at the current level of output

---

Definitions:

Complements

Goods or services that are used together, where the demand for one is increased when the price of the other decreases.

Baby Boom

A significant increase in the birth rate, particularly the post-World War II population surge between 1946 and 1964.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Preschool Services

Educational and care services provided to children, typically between the ages of 3 and 5, aimed at early childhood development and preparation for formal schooling.