CEPA (CERTIFIED EXIT PLANNING ADVISOR)
EXAM QUESTIONS WITH VERIFIED ANSWERS
2026 | Practice Questions | A+ Verified
• According to the Family Firm Institute, what percentage of family transitions survive
into the second generation?
A) 20%
B) 30%
C) 50%
D) 70% -✓✓B) 30%
• According to EPI's first national State of Owner Readiness Survey, what percentage of
business owners have done no exit planning
at all?
A) 99%
B) 40%
C) 83%
D) 49% -✓✓D) 49%
• Which of the following is not one of the five Ds?
A) Distress
B) Decide
C) Divorce
D) Death -✓✓B) Decide
• Business owners are leaving dollars on the table because they are not focusing on
what?
A) Family unity
B) Sales and income
C) Enterprise value
D) Creating an Exit Plan -✓✓C) Enterprise value
• The Advisor of the Future needs to get owners and advisors to make several paradigm
shifts for exit planning and value acceleration
to work to the benefit of owners and their families. What is the first paradigm shift that
needs to be made?
A) Focus on enterprise value
B) Adopt a process and work from a common framework
C) Exit planning is good business strategy
D) All of the above -✓✓C) Exit planning is good business strategy
• The Value Acceleration Methodology™ is based on a management philosophy called
what?
,A) Cognitive theory
B) Master planning
C) Business enterprise
D) Business canvas -✓✓B) Master planning
• Which of the following is not a gate in the Value Acceleration Methodology?
A) Prepare
B) Plan
C) Discover
D) Decide -✓✓B) Plan
• Which of the following is a benefit of focusing on value?
A) Very predictable results
B) Gets employees thinking like owners
C) Mitigates risk
D) All of the above -✓✓D) All of the above
• The "Triggering Event" is delivered in what gate of the Value Acceleration
Methodology?
A) Discover
B) Prepare
C) Decide
D) All of the above -✓✓A) Discover
• What is the total timeframe it typically takes to move a business owner through the full
Value Acceleration Methodology process?
A) Six months to one year
B) Minimum of one year
C) One to three years
D) 3.5 years or more -✓✓D) 3.5 years or more
• Personal liability insurance is a supplementary insurance that is not imperative for
business owners to own since most homeowners
and car insurance policies are comprehensive and cover similar liabilities.
A) True
B) False -✓✓B) False
• Wealth management includes various components of investment management and
comprehensive planning such as:
A) Portfolio management
B) Retirement planning
C) Risk management
D) Estate planning
E) All of the above -✓✓E) All of the above
,• Which of the following is an example of lacking portfolio diversification?:
A) An appropriate three to six month cash reserve
B) Too much US Large Cap or Private Company Stock
C) High expense ratios
D) Exposure to Emerging Markets -✓✓B) Too much US Large Cap or Private Company
Stock
• For a business owner to minimize estate tax liabilities and ensure specificity for control
and protections of assets before and after
death, they should have:
A) Will
B) Power of attorney for financial transactions
C) Revocable living trust
D) All of the above -✓✓D) All of the above
• A retirement cash flow plan, which details the amount of, additions to and uses of
investment assets, is most accurate when the
following is used in the analysis:
A) A static rate of return
B) Statistical modeling
C) Historical S&P500 rate of return
D) The historical average rate of return on the client's existing portfolio -✓✓B) Statistical
modeling
• If estate is less than $5 million ($10 million for a married couple), do I still need estate
planning?
A) Yes
B) No -✓✓A) Yes
• What is the primary objective for most Irrevocable Trusts or Family Limited
Partnerships?
A) Remove the business (or other asset) and future appreciation out of the estate
B) Pay less corporate income tax to state
C) Pass 100% of the estate to family members
D) All of the above -✓✓A) Remove the business (or other asset) and future
appreciation out of the estate
• What is an advantage of moving assets to a trust?
A) Assets in trust avoid probate
B) Personal details about the estate do not become public
C) Make sure assets go where you want them
D) All of the above -✓✓D) All of the above
• Which of the following is not considered an advantage of Family Limited Partnership?
A) Consolidates the ownership of multiple assets into one entity
, B) Can be used as a vehicle to transfer wealth and ownership to younger family
members
C) Assets are contributed at Fair Market Value
D) Give away value of company and future appreciation without giving away control -
✓✓C) Assets are contributed at Fair Market Value
• Asset protection is a continuum that includes balancing equity, asset, and jurisdictional
changes.
A) True
B) False -✓✓A) True
• In 2016 charitable gifts exceeded what dollar amount?
A) $400 million
B) $350 million
C) $350 billion
D) $500 billion -✓✓C) $350 billion
• What percent of entrepreneurs donate money to charities?
A) 50%
B) 27%
C) 90%
D) 70% -✓✓C) 90%
• What types of assets can be donated?
A) Cash
B) Artwork
C) C-Corps
D) Whole Life Insurance policy
E) All of the above -✓✓E) All of the above
• What are the two most highly valued gifts made to foundations/trusts/charitable
organizations?
A) Mineral rights and farmland
B) Marketable securities and cash
C) Cash and insurance policies
D) Business or business stock and real estate -✓✓D) Business or business stock and
real estate
• What are the benefits for the business owner and family for integrating charitable
contributions?
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 -✓✓D) All of the above
EXAM QUESTIONS WITH VERIFIED ANSWERS
2026 | Practice Questions | A+ Verified
• According to the Family Firm Institute, what percentage of family transitions survive
into the second generation?
A) 20%
B) 30%
C) 50%
D) 70% -✓✓B) 30%
• According to EPI's first national State of Owner Readiness Survey, what percentage of
business owners have done no exit planning
at all?
A) 99%
B) 40%
C) 83%
D) 49% -✓✓D) 49%
• Which of the following is not one of the five Ds?
A) Distress
B) Decide
C) Divorce
D) Death -✓✓B) Decide
• Business owners are leaving dollars on the table because they are not focusing on
what?
A) Family unity
B) Sales and income
C) Enterprise value
D) Creating an Exit Plan -✓✓C) Enterprise value
• The Advisor of the Future needs to get owners and advisors to make several paradigm
shifts for exit planning and value acceleration
to work to the benefit of owners and their families. What is the first paradigm shift that
needs to be made?
A) Focus on enterprise value
B) Adopt a process and work from a common framework
C) Exit planning is good business strategy
D) All of the above -✓✓C) Exit planning is good business strategy
• The Value Acceleration Methodology™ is based on a management philosophy called
what?
,A) Cognitive theory
B) Master planning
C) Business enterprise
D) Business canvas -✓✓B) Master planning
• Which of the following is not a gate in the Value Acceleration Methodology?
A) Prepare
B) Plan
C) Discover
D) Decide -✓✓B) Plan
• Which of the following is a benefit of focusing on value?
A) Very predictable results
B) Gets employees thinking like owners
C) Mitigates risk
D) All of the above -✓✓D) All of the above
• The "Triggering Event" is delivered in what gate of the Value Acceleration
Methodology?
A) Discover
B) Prepare
C) Decide
D) All of the above -✓✓A) Discover
• What is the total timeframe it typically takes to move a business owner through the full
Value Acceleration Methodology process?
A) Six months to one year
B) Minimum of one year
C) One to three years
D) 3.5 years or more -✓✓D) 3.5 years or more
• Personal liability insurance is a supplementary insurance that is not imperative for
business owners to own since most homeowners
and car insurance policies are comprehensive and cover similar liabilities.
A) True
B) False -✓✓B) False
• Wealth management includes various components of investment management and
comprehensive planning such as:
A) Portfolio management
B) Retirement planning
C) Risk management
D) Estate planning
E) All of the above -✓✓E) All of the above
,• Which of the following is an example of lacking portfolio diversification?:
A) An appropriate three to six month cash reserve
B) Too much US Large Cap or Private Company Stock
C) High expense ratios
D) Exposure to Emerging Markets -✓✓B) Too much US Large Cap or Private Company
Stock
• For a business owner to minimize estate tax liabilities and ensure specificity for control
and protections of assets before and after
death, they should have:
A) Will
B) Power of attorney for financial transactions
C) Revocable living trust
D) All of the above -✓✓D) All of the above
• A retirement cash flow plan, which details the amount of, additions to and uses of
investment assets, is most accurate when the
following is used in the analysis:
A) A static rate of return
B) Statistical modeling
C) Historical S&P500 rate of return
D) The historical average rate of return on the client's existing portfolio -✓✓B) Statistical
modeling
• If estate is less than $5 million ($10 million for a married couple), do I still need estate
planning?
A) Yes
B) No -✓✓A) Yes
• What is the primary objective for most Irrevocable Trusts or Family Limited
Partnerships?
A) Remove the business (or other asset) and future appreciation out of the estate
B) Pay less corporate income tax to state
C) Pass 100% of the estate to family members
D) All of the above -✓✓A) Remove the business (or other asset) and future
appreciation out of the estate
• What is an advantage of moving assets to a trust?
A) Assets in trust avoid probate
B) Personal details about the estate do not become public
C) Make sure assets go where you want them
D) All of the above -✓✓D) All of the above
• Which of the following is not considered an advantage of Family Limited Partnership?
A) Consolidates the ownership of multiple assets into one entity
, B) Can be used as a vehicle to transfer wealth and ownership to younger family
members
C) Assets are contributed at Fair Market Value
D) Give away value of company and future appreciation without giving away control -
✓✓C) Assets are contributed at Fair Market Value
• Asset protection is a continuum that includes balancing equity, asset, and jurisdictional
changes.
A) True
B) False -✓✓A) True
• In 2016 charitable gifts exceeded what dollar amount?
A) $400 million
B) $350 million
C) $350 billion
D) $500 billion -✓✓C) $350 billion
• What percent of entrepreneurs donate money to charities?
A) 50%
B) 27%
C) 90%
D) 70% -✓✓C) 90%
• What types of assets can be donated?
A) Cash
B) Artwork
C) C-Corps
D) Whole Life Insurance policy
E) All of the above -✓✓E) All of the above
• What are the two most highly valued gifts made to foundations/trusts/charitable
organizations?
A) Mineral rights and farmland
B) Marketable securities and cash
C) Cash and insurance policies
D) Business or business stock and real estate -✓✓D) Business or business stock and
real estate
• What are the benefits for the business owner and family for integrating charitable
contributions?
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 -✓✓D) All of the above
