CEPA (Certified Exit Planning Advisor) EXAM
STUDY QUESTIONS WITH ACCURATE
SOLUTIONS A+ VERIFIED FOR PREPARATION.
Teams help deliver a better-quality product to the business owner
because they create synergy, thus generating performance greater than
the sum of the performance of its individual members.
a) True
b) False
a) True
Which of the following is not a good method for building trust among team
members?
a) Share common experiences
b) Call out members when you assume a negative conclusion
c) Become familiar with how each member prefers to communicate and
make decisions
d) Get to know one another socially
b) Call out members when you assume a negative conclusion
What is a corrosive element within a team?
a) Absence of trust
b) Conflict avoidance
c) Ambiguity
d) Lack of accountability
e) All of the above
e) All of the above
,As the quarterback of the team, if some of the team members appear to
have lost focus or aren't as committed to the team and business owner,
you should:
a) Set and publish clear goals
b) Call those team members out at next meeting
c) Create results-based rewards
d) Start leaving them out of team updates or communications
e) Both a and c
e) Both a and c
Based on the 2013 EPI State of Owner Readiness Survey, how many
business owners were not familiar with all their transition options?
a) 1/3rd
b) About half
c) Nearly 2/3rds
d) 99%
c) Nearly 2/3rds
What is a pro for an intergenerational transfer?
a) Business legacy preservation
b) Planned
c) Lower cost
d) All of the above
d) All of the above
What are the two general categories for private ownership exit options?
a) Sale and Transfer
b) Planned and Unplanned
c) Inside and Outside
d) Management Buyout and Sale to Partners
c) Inside and Outside
,Which of the following is not an inside exit option?
a) Intergenerational transfer
b) Recapitalization
c) Management buyout
d) Sale to existing partners
b) Recapitalization
A business owner you are advising on exit options does not have a family
member or children to transfer the business to. She would like the exit
option that will get her the highest price for the business, more cash up
front, and will allow her to walk away faster. What option do you
recommend?
a) Sale to existing partners
b) Recapitalization
c) Sale to third party
d) Management buy-out
c) Sale to third party
An owner must sell a majority position to complete a recapitalization or
refinance option?
a) True
b) False
b) False
Which type of transaction does a private equity sponsor acquire older
generation's shares to allow the younger generation management to
continue operating the business?
a) Owner retirements
b) Working capital
c) Family successions
d) Recapitalizations
, c) Family successions
In a minority recapitalization transaction, a sponsor acquires less than
50% of the company to hold minority position to support the current
management team.
a) True
b) False
a) True
Which of the following is not a factor for a private equity group considering
an investment?
a) Stage of development
b) Management
c) Stock price
d) Company size
c) Stock price
In which type of private equity transaction does the owner or shareholder
end with the most liquidity but the least control?
a) Recapitalization
b) Outright sale
c) Minority recap
d) Majority recap
b) Outright sale
How does a private equity group value a business?
a) EBITDA x multiple
b) How the company makes money
c) The company's growth opportunities
d) Type of business
e) All of the above
STUDY QUESTIONS WITH ACCURATE
SOLUTIONS A+ VERIFIED FOR PREPARATION.
Teams help deliver a better-quality product to the business owner
because they create synergy, thus generating performance greater than
the sum of the performance of its individual members.
a) True
b) False
a) True
Which of the following is not a good method for building trust among team
members?
a) Share common experiences
b) Call out members when you assume a negative conclusion
c) Become familiar with how each member prefers to communicate and
make decisions
d) Get to know one another socially
b) Call out members when you assume a negative conclusion
What is a corrosive element within a team?
a) Absence of trust
b) Conflict avoidance
c) Ambiguity
d) Lack of accountability
e) All of the above
e) All of the above
,As the quarterback of the team, if some of the team members appear to
have lost focus or aren't as committed to the team and business owner,
you should:
a) Set and publish clear goals
b) Call those team members out at next meeting
c) Create results-based rewards
d) Start leaving them out of team updates or communications
e) Both a and c
e) Both a and c
Based on the 2013 EPI State of Owner Readiness Survey, how many
business owners were not familiar with all their transition options?
a) 1/3rd
b) About half
c) Nearly 2/3rds
d) 99%
c) Nearly 2/3rds
What is a pro for an intergenerational transfer?
a) Business legacy preservation
b) Planned
c) Lower cost
d) All of the above
d) All of the above
What are the two general categories for private ownership exit options?
a) Sale and Transfer
b) Planned and Unplanned
c) Inside and Outside
d) Management Buyout and Sale to Partners
c) Inside and Outside
,Which of the following is not an inside exit option?
a) Intergenerational transfer
b) Recapitalization
c) Management buyout
d) Sale to existing partners
b) Recapitalization
A business owner you are advising on exit options does not have a family
member or children to transfer the business to. She would like the exit
option that will get her the highest price for the business, more cash up
front, and will allow her to walk away faster. What option do you
recommend?
a) Sale to existing partners
b) Recapitalization
c) Sale to third party
d) Management buy-out
c) Sale to third party
An owner must sell a majority position to complete a recapitalization or
refinance option?
a) True
b) False
b) False
Which type of transaction does a private equity sponsor acquire older
generation's shares to allow the younger generation management to
continue operating the business?
a) Owner retirements
b) Working capital
c) Family successions
d) Recapitalizations
, c) Family successions
In a minority recapitalization transaction, a sponsor acquires less than
50% of the company to hold minority position to support the current
management team.
a) True
b) False
a) True
Which of the following is not a factor for a private equity group considering
an investment?
a) Stage of development
b) Management
c) Stock price
d) Company size
c) Stock price
In which type of private equity transaction does the owner or shareholder
end with the most liquidity but the least control?
a) Recapitalization
b) Outright sale
c) Minority recap
d) Majority recap
b) Outright sale
How does a private equity group value a business?
a) EBITDA x multiple
b) How the company makes money
c) The company's growth opportunities
d) Type of business
e) All of the above
