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CEPA CE Questions With Complete Answers (Solved)
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CEPA CE Questions With Complete Answers (Solved)
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CEPA CE Questions With Complete Answers (Solved)CEPA Module 5 Question 1: What are the first two major deliverables within
Gate 1 of the Value Acceleration Methodology™? Right Ans - A Business
Valuation and Personal, Financial, Business Assessment
CEPA Module 5 Question 2: In what gate would you utilize a business
valuation? Right Ans - Gate 1
CEPA Module 5 Question 3: What is a common exit readiness issue? Right
Ans - No personal goals and objectives
Shareholders/family members aren't on the same page
Credibility of financial information
CEPA Module 5 Question 4: Year over year growth in sales and profit would
benefit a company's: Right Ans - Attractiveness
CEPA Module 5 Question 5: A business attractiveness score of 67% is
considered: Right Ans - Above average
CEPA Module 5 Question 7: Strong customer loyalty, staff longevity, and
organized financials are all examples of ____. Right Ans - Business
attractiveness strengths
CEPA Module 5 Question 8: Homes, cars, and travel charged through the
business are all examples of ____. Right Ans - Discretionary expenses
CEPA Module 5 Question 9: The Triggering Event promotes owner action ___%
of the time. Right Ans - 70%
CEPA Module 5 Question 10: A business's Range of Value (ROV) multiple is
determined by _____. Right Ans - The private capital market
CEPA Module 6 Question 1: Why would an owner want to have a business
valuation performed on their company? Right Ans - Divorce
Ownership transfer to family
Installing an ESOP
,CEPA Module 6 Question 2: Which of the following is NOT a standard of value
when it comes to business valuation? Right Ans - Hypothetical value
Investment value
Fair market value
Fair value
CEPA Module 6 Question 3: Which of the following is not one of the three
broad approaches to determining value? Right Ans - Liquidity
Income
Market
Asset
CEPA Module 6 Question 4: In the income approach to business valuation,
which method is predicated on a specific future look at economic benefits?
Right Ans - Discounted cash flow method
CEPA Module 6 Question 5: What are the two most common types of
transactions during a business sale? Right Ans - Asset Sale and Stock Sale
CEPA Module 6 Question 6: Which Standard of Value can lead to unrealistic
seller expectations? Right Ans - Emotional Value
CEPA Module 6 Question 7: There are three broad approaches to determining
value. The income approach, the market approach, and the ____ approach.
Right Ans - Asset approach
CEPA Module 6 Question 8: A ____ buyer may consider purchasing a company
in order to enter a new market or obtain new intellectual property. Right
Ans - Strategic buyer
CEPA Module 6 Question 9: The complexity of Value Acceleration should be
_____ during the Discovery Gate. Right Ans - Low
CEPA Module 6 Question 10: _____ is the value to a particular investor based on
individual investment requirements and expectations. Right Ans -
Investment Value
, CEPA Module 7 Question 1: What are some categories to evaluate and
compare to other companies in the marketplace? Right Ans - Market
growth
Equipment condition
Products and sales
CEPA Module 7 Question 2: What is the timeframe most private companies
can increase their value and should begin their value growth? Right Ans -
Three to five years
CEPA Module 7 Question 3: Which of the following is NOT considered a
strategy for increasing enterprise value? Right Ans - Conduct a Triggering
Event
Increase earnings
Reduce risk
Position yourself as best-in-class
CEPA Module 7 Question 4: Which stage of the business transition journey
would a business owner fall into if they were to begin reviewing their options
but are not ready to commit to advisory services? Right Ans - Exploring
CEPA Module 7 Question 5: Which of the following is considered a Value
Domain? Right Ans - Culture
Sales and Marketing
Risk
CEPA Module 7 Question 6: Value Acceleration must deliver two out of three
Right Ans - Clarity
Liquidity
Legacy
CEPA Module 7 Question 7: If Company A earns more revenue per year than
Company B, what would be a reason as to why a buyer might still find
Company B more attractive? Right Ans - Company B is less reliant on their
owner
CEPA Module 7 Question 8: Value Acceleration looks to provide a business
with less ____. Right Ans - Volatility
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