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CEPA Course Questions And Answers Latest Update
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CEPA Course Questions And Answers Latest Update
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CEPA Course Questions AndAnswers Latest Update
What survey indicated that 99% of business owners at least in some way agreed
that "having a transition strategy is important for my future and the future of my
business?" Answer: State of Owner Readiness
It's important to not just tell an owner the right answer, but to ask them the right
question. Which is an example of the "right question" to ask a business owner
client? Answer: a. What is the strength of your intangible capital?
b. What is your biggest pain point and biggest desire?
c. What deal structure are you looking for when selling?
d. All the above (correct)
Complete the following quote: "Luck is ___ meeting opportunity." Answer:
Preparation
four intangible capitals (The 4Cs) include Human, Structural, Social, and Customer
capitals. (T/F) Answer: TRUE
Which of the following statements is false? Answer: c. The Baby Boomer
generation doesn't need to be thinking about exit planning yet
Complete this sentence: A successful exit strategy balances the "____ Legs of the
Stool." Answer: b. Three
(Business, Financial, and Personal)
,What is one of the main causes of "sellers' cold feet" during the sale of a
business? Answer: a. Lack of personal planning
What is the first stage in the "Five Stages of Value Maturity?" Answer: c.
Identify
When ranking a business's intangible capitals, what is the main purpose of using
the common sense scoring of 1-6? Answer: c. It forces you to not choose
"average"
A key difference between lifestyle businesses and value creator businesses is that
value creator businesses usually generate better income. (T/F) Answer: True
Which of the following is not a gate in the Value Acceleration Methodology?
Answer: b. Plan
If the potential value for a business is 16 million, and it's currently valued at 9
million, what is the value gap of the business? Answer: a. 7 million
The typical business owner has ____% of their net worth tied up within their
business. Answer: a. 80%
What is a benefit of prioritizing wealth management for a business owner?
Answer: a. Tax efficiency
b. Insurances in place (Risk Management)
c. Structured cash flow
,d. All of the above (correct)
Life insurance, health insurance, and product liability insurance all fall under
which section of the financial planning process? Answer: b. Risk Management
Which of the following best describes the components of integrated wealth
management for individuals? Answer: d. Retirement planning,risk
management, estate planning, portfolio management
A business owner only needs one advisor to complete their exit planning process.
(T/F) Answer: False!
Typical estate planning conversations discuss how to preserve a decedent
spouse's "coupon." (T/F) Answer: True
A _____ gift is one in which the person who received the gift has the unrestricted
right to the immediate possession and use of it. Answer: c. Present interest
gift
Which of the following statements is not true? Answer: a. All states have an
estate tax
The main goal of minimizing wealth tax is to: Answer: c. Maximize the client's
portion of earnings and minimize the IRS's portion
What does the acronym "NING" stand for when looking at income tax planning
options? Answer: b. Nevada Incomplete Non-Grantor Trust
, Which of the following is a disadvantage of an intentionally defective grantor
trust (IDGT)? Answer: d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called: Answer:
d. Asset protection
What are the benefits for the business owner and family for integrating charitable
contributions? Answer: a. Wanting to transfer values and purpose, not just
assets
b. Creating intergenerational common ground to collaborate, make joint
decisions, gain confidence, develop/fulfill potential c. Developing an emotional
and functional bridge between wealth, purpose, and society
d. All of the above (correct)
Of the 250,000 US companies with $5M to $100M in revenue set to transition by
2030, how many will actually sell for desired value? Answer: b. 14,000
As categorized by the Fisher College of Business at the Ohio State University, what
are the three types of companies in the marketplace? Answer: d. Investors,
Innovators, Efficiency Experts
What are some categories to evaluate and compare to other companies in the
marketplace? Answer: a. Market growth
b. Equipment condition
c. Products and sales
d. All of the above (correct)
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