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CEPA course questions with answers
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CEPA course questions with answersWhat 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?"
- .......🔷ANSWERS🔶......✔✔ 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? - .......🔷ANSWERS🔶......✔✔ 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." - .......🔷ANSWERS🔶......✔✔
Preparation
four intangible capitals (The 4Cs) include Human, Structural, Social, and Customer capitals. (T/F)
- .......🔷ANSWERS🔶......✔✔ TRUE
Which of the following statements is false? - .......🔷ANSWERS🔶......✔✔ 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."
- .......🔷ANSWERS🔶......✔✔ b. Three
(Business, Financial, and Personal)
What is one of the main causes of "sellers' cold feet" during the sale of a business?
- .......🔷ANSWERS🔶......✔✔ a. Lack of personal planning
What is the first stage in the "Five Stages of Value Maturity?" - .......🔷ANSWERS🔶......✔✔ c.
Identify
,When ranking a business's intangible capitals, what is the main purpose of using the common sense
scoring of 1-6? - .......🔷ANSWERS🔶......✔✔ 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) - .......🔷ANSWERS🔶......✔✔ True
Which of the following is not a gate in the Value Acceleration Methodology?
- .......🔷ANSWERS🔶......✔✔ 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? - .......🔷ANSWERS🔶......✔✔ a. 7 million
The typical business owner has ____% of their net worth tied up within their business.
- .......🔷ANSWERS🔶......✔✔ a. 80%
What is a benefit of prioritizing wealth management for a business owner?
- .......🔷ANSWERS🔶......✔✔ 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? - .......🔷ANSWERS🔶......✔✔ b. Risk Management
Which of the following best describes the components of integrated wealth management for
individuals? - .......🔷ANSWERS🔶......✔✔ d. Retirement planning,risk management, estate
planning, portfolio management
A business owner only needs one advisor to complete their exit planning process. (T/F)
- .......🔷ANSWERS🔶......✔✔ False!
, Typical estate planning conversations discuss how to preserve a decedent spouse's "coupon." (T/F)
- .......🔷ANSWERS🔶......✔✔ 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. - .......🔷ANSWERS🔶......✔✔ c. Present interest gift
Which of the following statements is not true? - .......🔷ANSWERS🔶......✔✔ a. All states have an
estate tax
The main goal of minimizing wealth tax is to: - .......🔷ANSWERS🔶......✔✔ 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?
- .......🔷ANSWERS🔶......✔✔ b. Nevada Incomplete Non-Grantor Trust
Which of the following is a disadvantage of an intentionally defective grantor trust (IDGT)?
- .......🔷ANSWERS🔶......✔✔ d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called:
- .......🔷ANSWERS🔶......✔✔ d. Asset protection
What are the benefits for the business owner and family for integrating charitable contributions?
- .......🔷ANSWERS🔶......✔✔ 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? - .......🔷ANSWERS🔶......✔✔ b. 14,000
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