CEPA Certified Exit Planning Advisor Exam Questions And Answers

What 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?" - 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? - 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? Complete the following quote: "Luck is ___ meeting opportunity." - ANS Preparation Four intangible capitals (The 4Cs) include Human, Structural, Social, and Customer (True/False) - ANS True Four intangible capitals (The 4Cs) include _ _ _ _ _, Structural, Social, and Customer - ANS Human Four intangible capitals (The 4Cs) include Human, _ _ _ _ _ _ _ _ _ _, Social, and Customer - ANS Structural Four intangible capitals (The 4Cs) include Human, Structural, _ _ _ _ _ _, and Customer - ANS Social Four intangible capitals (The 4Cs) include Human, Structural, Social, and _ _ _ _ _ _ _ _ - ANS Customer Business is personal for most owners (T/F) - ANS True Exit planning is a strategic business tool used to focus the company on maximizing business value (T/F) - ANS True The Baby Boomer generation doesn't needs to be thinking about exit planning (T/F) - ANS True The Value Acceleration Methodology provides a structure to the exit planning process (T/F) - ANS True A successful exit strategy balances the "____ Legs of the Stool." - ANS Three What is one of the main causes of "sellers' cold feet" during the sale of a business? - ANS Lack of Personal Planning What is the first stage in the "Five Stages of Value Maturity?" - ANS Identify What is the second stage in the "Five Stages of Value Maturity?" - ANS Protect What is the third stage in the "Five Stages of Value Maturity?" - ANS Build What is the fourth stage in the "Five Stages of Value Maturity?" - ANS Harvest What is the fifth/final stage in the "Five Stages of Value Maturity?" - ANS Manage When ranking a business's intangible capitals, what is the main purpose of using the common sense scoring of 1 - 6 - ANS Forced to not chose average A key difference between lifestyle businesses and value creator businesses is that value creator businesses usually generate better income (T/F) - ANS True First gate in the Value Acceleration Methodology? - ANS Discover Second gate in the Value Acceleration Methodology? - ANS Prepare Third gate in the Value Acceleration Methodology? - ANS Decide 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? - ANS $7 Million The typical business owner has ____% of their net worth tied up within their business. - ANS 80% What are benefit of prioritizing wealth management for a business owner? - ANS a. Tax efficiency b. Insurances in place (Risk Management) c. Structured cash flow Life insurance, health insurance, and product liability insurance all fall under which section of the financial planning process? - ANS Risk Management The components of integrated wealth management for individuals are: - ANS Retirement planning, risk management, estate planning, portfolio management A business owner only needs one advisor to complete their exit planning (T/F) - ANS False Typical estate planning conversations discuss how to preserve a decedent spouse's "coupon." (T/F) - 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. - ANS Present Interest Gift All states have an estate tax (T/F) - ANS False Not all states have an estate tax (T/F) - ANS True