CEPA EXAM STUDY GUIDE QUESTIONS WITH CORRECT ANSWERS ALL VERIFIED BY AN EXPERT A+ GRADED (LATEST UPDATE)

K
C
LO
YC

CEPA EXAM STUDY GUIDE
D


QUESTIONS WITH CORRECT
U



ANSWERS ALL VERIFIED BY
ST




AN EXPERT A+ GRADED
(LATEST UPDATE)

,__% of owners have no WRITTEN transition plan. - ANS 79

__% have done no planning at all. - ANS 48

__% have no written personal THIRD ACT plan. - ANS 94

__% of owners plan to transition over the next 10 years (representing ____ million
businesses and over $___ trillion in wealth). - ANS 76%, 4.5 million, $10 trillion




K
___ of business owners have no transition plan. - ANS 49%

More than __% of businesses that are put on the market do not sell. - ANS 70




C
Only __% of family-owned
businesses transition to the second generation, and only __% survive to the third. - ANS 30%,




LO
12%

A Successful Exit Strategy Has Three Legs: - ANS Maximizes Transferrable Business Value,
Ensures Owner is Financially Prepared, and Ensures there is a plan for "What Next?"
YC
5 Stages of the Value Maturity Index - ANS Identify, Protect, Build, Harvest, and Manage
Value

The 4 C's - ANS Human, Structural, Customer, Social

Strategic Value factors you control - ANS Predictable Cash Flow, Clean Balance Sheet, Size
D

Matters!

Strategic Value factors you control some of - ANS Private capital market conditions,
U


Terms/Exit Option, Tangibles (value factors)

Traditional accounting systems are setup to provided regular feedback on
ST




_____________________, yet your ________________________
are the direct drivers of business attractiveness. - ANS tangible assets, intangible assets

Value Acceleration measures the value of your ________________________. - ANS
intangible assets

Value Acceleration is a proven process that focuses on value growth and aligning
__________________, __________________, and __________________ goals. - ANS
business, personal, and financial

, Value Acceleration is a proven process that focuses on ____________________ and aligning
business, personal, and financial goals. - ANS value growth

An exit plan asks and answers all the ________________, _______________,
_______________, _______________, and ___________ questions involved in transitioning a
privately owned business. - ANS business, personal, financial, legal, and tax

Exit Planning combines the __________, ______________, _______________, and
_______________ into a clear, simple strategy to build a business that is transferable through
strong __________, ______________, _______________, and _______________ capital. -




K
ANS plan, concept, effort, and process, human, structural, customer, and social

______________________ protects future you from present you; and, vise versa! - ANS




C
Proper planning

Where you will be 5 years from now is determined by




LO
______________________________________ and
___________________________________. - ANS the books you read and the people you
associate with today.

The "quarterback" is the ____________________________________________. - ANS
YC
personal financial planning team

___% of business owners do not have a written FINANCIAL plan. - ANS 75

Proper financial planning answers a huge question - What is the ___________________? -
ANS Wealth Gap
D

A first step in financial planning: gather the personal ______________________ data. - ANS
balance sheet
U


A _______________________ provides for the stability and continuity of a closely held
business and is a crucial part of a business owner's overall succession and estate plan. - ANS
ST




buy-sell agreement

Triggering events may include: - ANS Death of an owner, Disability of an owner, An offer by an
outside party to purchase the owner's interest, Termination of an owner's employment, Divorce
of an owner

There are many acceptable ways to execute investment plans post-exit. The key is to manage
the ______________________ within a framework focused on ________________. - ANS
family expectations, goals.

Families without advisors often decide to ___________________. - ANS do nothing