CEPA COURSE FINAL EXAM
QUESTIONS CORRECTLY SOLVED
Question 1: 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?"
CORRECT ANSWER : State of Owner Readiness
Question 2: 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?
- What is the strength of your intangible capital?
- What is your biggest pain point and biggest desire?
- What deal structure are you looking for when selling?
- All the above (correct)
CORRECT ANSWER : d. All the above
Question 3: Complete the following quote: "Luck is ___ meeting opportunity."
CORRECT ANSWER : Preparation
Question 4: four intangible capitals (The 4Cs) include
Human, Structural, Social, and Customer capitals. (T/F)
CORRECT ANSWER : TRUE
Question 5: Which of the following statements is false?
- The Baby Boomer generation doesn't need to be thinking
about exit planning yet
CORRECT ANSWER : c. The Baby Boomer generation
doesn't need to be thinking about exit planning yet
Question 6: Complete this sentence: A successful exit strategy balances the "____ Legs of the Stool."
- Three
(Business, Financial, and Personal)
CORRECT ANSWER : b. Three
Question 7: What is one of the main causes of "sellers' cold
feet" during the sale of a business?
- Lack of personal planning
CORRECT ANSWER : a. Lack of personal planning
Question 8: What is the first stage in the "Five Stages of
Value Maturity?"
- Identify
CORRECT ANSWER : c. Identify
Question 9: When ranking a business's intangible capitals,
what is the main purpose of using the common sense scoring of 1-6?
- It forces you to not choose "average"
CORRECT ANSWER : c. It forces you to not choose
"average"
Question 10: A key difference between lifestyle businesses
and value creator businesses is that value creator businesses usually generate better income. (T/F)
CORRECT ANSWER : True
Question 11: Which of the following is not a gate in the Value
Acceleration Methodology?
- Plan
CORRECT ANSWER : b. Plan
Question 12: 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?
- 7 million
CORRECT ANSWER : a. 7 million
Question 13: The typical business owner has ____% of their
net worth tied up within their business.
- 80%
CORRECT ANSWER : a. 80%
Question 14: What is a benefit of prioritizing wealth
management for a business owner?