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CEPA - Exam Question & Terms Bank With Solutions
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CEPA - Exam Question & Terms Bank With SolutionsWhat 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?" Right Ans - State of Owner Readiness
It's important to not just tell an owner the right answer, but to ask them the
right question. What are examples of the "right question" to ask a business
owner client? Right Ans - What is the strength of your intangible capital?
What is your biggest pain point and biggest desire?
What deal structure are you looking for when selling?
Complete this sentence: A successful exit strategy balances the "____ Legs of
the Stool." Right Ans - Three
What is the cause of "sellers' cold feet" during the sale of a business? Right
Ans - Lack of personal planning
What is the first stage in the "Five Stages of Value Maturity?" Right Ans -
Identify
When ranking a business's intangible capitals, what is the main purpose of
using the common sense scoring of 1-6? Right Ans - It forces you to not
choose "average"
Which style of business is more likely to generate better income and sell at a
premium? Right Ans - Value Creator
The four intangible capitals (The 4 Cs) include Human, Structural, Social, and
__ capitals. Right Ans - Customer
An independent personal, financial, and business assessment correlated to
business range of value is referred to as: Right Ans - The Triggering Event
What are questions owners should be asking themselves every 90 days?
Right Ans - Do you want to keep growing or do you want to shift focus to
exiting?
Is your business ready to transition?
Which exit options or hybrid options should we consider?
,What is the second stage in the "Five Stages of Value Maturity?" Right Ans -
Protect
Value Acceleration is grounded in: Right Ans - Action
Complete the following equation: R/EBITDA x Market Multiple = ______
Right Ans - Value
"Do you want to keep growing or do you want to shift focus to exiting?" is an
example of a question owners should ask themselves every ____. Right Ans -
90 Days
What is the third stage in the "Five Stages of Value Maturity?" Right Ans -
Build
What are the 3 gates in the Value Acceleration Methodology? Right Ans -
Prepare
Discover
Decide
The typical business owner has ____% of their net worth tied up within their
business. Right Ans - 80%
What are benefits of prioritizing wealth management for a business owner?
Right Ans - Tax efficiency
Insurances in place (Risk Management)
Structured cash flow
Life insurance, health insurance, and product liability insurance all fall under
which section of the financial planning process? Right Ans - Risk
Management
What best describes the components of integrated wealth management for
individuals? Right Ans - Retirement planning, risk management, estate
planning, portfolio management
, The distance between your client's current net worth and their financial goal
for post-business retirement life is referred to as the: Right Ans - Wealth
Gap
What are areas of wealth management that can be controlled by the business
owner? Right Ans - Cash Flow
Risk Management
Investments
What are examples of questions that financial planning can answer for a
business owner? Right Ans - How much money do I need to sell my
business for?
What rate of return do I need on my investments?
What is the current volatility of the stock market?
A ________ provides for the stability and continuity of a closely held business
and is a crucial part of a business owner's overall succession and estate plan.
Right Ans - buy-sell agreement
What are examples of information that is typically found on an owner's
balance sheet? Right Ans - Cash Reserve's Structure
Asset Protection
Interest Deductibility
If the client's goal is to have $15 million for post-business retirement life, but
their current net worth (without the business asset) is only $4 million, what
would be their Wealth Gap? Right Ans - $11 Million
A _____ gift is one in which the person who received the gift has the
unrestricted right to the immediate possession and use of it. Right Ans -
Present interest gift
Four true statements about estate and gift tax: Right Ans - A descendant's
unused federal estate tax exemption may be used by the surviving spouse
Not all states have an estate tax
The most efficient use of the federal estate/gift exemption is during life
A gift received by a person is not taxable income
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