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CEPA Course: Questions And Accurate Answers
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CEPA Course: Questions And Accurate Answers
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CEPA Course: Questions And Accurate 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?" 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. Which is an example of the "right question" to ask a business
owner client? Right Ans - 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." Right Ans
- Preparation
four intangible capitals (The 4Cs) include Human, Structural, Social, and
Customer capitals. (T/F) Right Ans - TRUE
Which of the following statements is false? Right Ans - 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." Right Ans - b. Three
(Business, Financial, and Personal)
What is one of the main causes of "sellers' cold feet" during the sale of a
business? Right Ans - a. Lack of personal planning
What is the first stage in the "Five Stages of Value Maturity?" Right Ans - c.
Identify
When ranking a business's intangible capitals, what is the main purpose of
using the common sense scoring of 1-6? Right Ans - 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) Right
Ans - True
,Which of the following is not a gate in the Value Acceleration Methodology?
Right Ans - 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? Right Ans - a. 7 million
The typical business owner has ____% of their net worth tied up within their
business. Right Ans - a. 80%
What is a benefit of prioritizing wealth management for a business owner?
Right Ans - 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? Right Ans - b. Risk
Management
Which of the following best describes the components of integrated wealth
management for individuals? Right Ans - d. Retirement planning,risk
management, estate planning, portfolio management
A business owner only needs one advisor to complete their exit planning
process. (T/F) Right Ans - False!
Typical estate planning conversations discuss how to preserve a decedent
spouse's "coupon." (T/F) Right Ans - 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. Right Ans - c.
Present interest gift
Which of the following statements is not true? Right Ans - a. All states have
an estate tax
The main goal of minimizing wealth tax is to: Right Ans - 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? Right Ans - b. Nevada Incomplete Non-Grantor Trust
Which of the following is a disadvantage of an intentionally defective grantor
trust (IDGT)? Right Ans - d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called:
Right Ans - d. Asset protection
What are the benefits for the business owner and family for integrating
charitable contributions? Right Ans - 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? Right Ans - 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? Right Ans - d.
Investors, Innovators, Efficiency Experts
What are some categories to evaluate and compare to other companies in the
marketplace? Right Ans - a. Market growth
b. Equipment condition
c. Products and sales
d. All of the above (correct)
What is the timeframe most private companies can increase their value and
should begin their value growth? Right Ans - a. Three to five years
A "deliverable"includes which of the following characteristics? Right Ans -
a. Represents the conclusion of an assignment, task, or action
b. Displays what the client is paying for
c. Provides recommendations on the next set of actions the client should take
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