CEPA EXAM QUESTIONS WITH 100% CORRECTLY SOLVED
ANSWERS.
1) 2 types of business owners and which one makes the most income -- Answer ✔✔ 1)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_Lifestyle Business Owners and value creators (value creators make the most b/c
_ _ _ _ _ _ _ _ _ _ _ _
they are considered best in class
_ _ _ _ _
2) 2 Parts of the Triggering Event deliverable in Gate 1 -- Answer ✔✔ 1) Business
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
attractiveness and personal, financial, and business assessment 2) Determination of
_ _ _ _ _ _ _ _ _ _
the present value and potential BIC value of biz
_ _ _ _ _ _ _ _
3) What is the profit gap? -- Answer ✔✔ Difference between your potential best in
_ _ _ _ _ _ _ _ _ _ _ _ _ _
class earnings and your current earnings. Measure of how much money you leave on
_ _ _ _ _ _ _ _ _ _ _ _ _
the table each year
_ _ _ _
4) What is the prioritized action plan? -- Answer ✔✔ Reflects the prioritization of
_ _ _ _ _ _ _ _ _ _ _ _ _
personal, business, and financial value factors to drive improved earnings and
_ _ _ _ _ _ _ _ _ _ _
business value _
5) How is the action plan broken down? -- Answer ✔✔ 3-10 year vision of chosen
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
destination, broken down into 1 year goals and 90 day sprints _ _ _ _ _ _ _ _ _ _
6) What is done in the prepare gate? -- Answer ✔✔ It's all about executing Action Plan
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
relentlessly
_
7) Common characteristics of value creators -- Answer ✔✔ 1) They do holistic
_ _ _ _ _ _ _ _ _ _ _ _
planning 2) Harmonize personal, financial, and biz 3) Personal aspirations and life
_ _ _ _ _ _ _ _ _ _ _ _
beyond biz 4) Mitigate risk 5) execute relentlessly well
_ _ _ _ _ _ _ _
8) ___ % of value of business tied to ___ assets -- Answer ✔✔ 80%/ intangible
_ _ _ _ _ _ _ _ _ _ _ _ _ _
, 9) __ % of BO indicate they have done no planning at all -- Answer ✔✔ 49%
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
10) __% of BO indicate they have no written transition plan -- Answer ✔✔ 83%
_ _ _ _ _ _ _ _ _ _ _ _ _
11) ___ % of BO indicate they have no life after business plan -- Answer ✔✔ 93%
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
12) What is a deliverable? -- Answer ✔✔ An outcome produced by an action. Ex) could
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
be a report, meeting, workshop, event
_ _ _ _ _
13) 3 Gates of the Value Acceleration Methodology -- Answer ✔✔ 1) Discover 2)
_ _ _ _ _ _ _ _ _ _ _ _ _
Prepare 3) Decide _ _
14) 2 Major Deliverables of Gate 1/Discover Gate -- Answer ✔✔ 1) Triggering Event 2)
_ _ _ _ _ _ _ _ _ _ _ _ _ _
Prioritized Action Plan _ _
15) What is the Triggering Event? -- Answer ✔✔ An independent personal, financial, and
_ _ _ _ _ _ _ _ _ _ _ _
_business assessment correlated to the business range of value
_ _ _ _ _ _ _ _
16) Why is the Triggering Event a supercharged valuation? -- Answer ✔✔ Bc it tells you
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
what business is worth today AND what it's potential BIC value may be
_ _ _ _ _ _ _ _ _ _ _ _
17) Triggering event triggers action ___ % of the time -- Answer ✔✔ 70
_ _ _ _ _ _ _ _ _ _ _ _
18) What are the 4 C's? -- Answer ✔✔ 1) Human Capital 2) Customer Capital 3)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Structural Capital 4) Social Capital. *Make up the sum of your intangible capital*
_ _ _ _ _ _ _ _ _ _ _ _
19) Percentage of biz that actually sell once made to market -- Answer ✔✔ 20-30%
_ _ _ _ _ _ _ _ _ _ _ _ _
20) Business owners have ___ percent of their assets tied up in biz -- Answer ✔✔ 80%
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
21) __ % of BO indicate they would like to transition in next 10 years -- Answer ✔✔
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
63%
22) ___ % of BO indicate they would like to transition in next 5 years -- Answer ✔✔
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
41%
ANSWERS.
1) 2 types of business owners and which one makes the most income -- Answer ✔✔ 1)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_Lifestyle Business Owners and value creators (value creators make the most b/c
_ _ _ _ _ _ _ _ _ _ _ _
they are considered best in class
_ _ _ _ _
2) 2 Parts of the Triggering Event deliverable in Gate 1 -- Answer ✔✔ 1) Business
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
attractiveness and personal, financial, and business assessment 2) Determination of
_ _ _ _ _ _ _ _ _ _
the present value and potential BIC value of biz
_ _ _ _ _ _ _ _
3) What is the profit gap? -- Answer ✔✔ Difference between your potential best in
_ _ _ _ _ _ _ _ _ _ _ _ _ _
class earnings and your current earnings. Measure of how much money you leave on
_ _ _ _ _ _ _ _ _ _ _ _ _
the table each year
_ _ _ _
4) What is the prioritized action plan? -- Answer ✔✔ Reflects the prioritization of
_ _ _ _ _ _ _ _ _ _ _ _ _
personal, business, and financial value factors to drive improved earnings and
_ _ _ _ _ _ _ _ _ _ _
business value _
5) How is the action plan broken down? -- Answer ✔✔ 3-10 year vision of chosen
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
destination, broken down into 1 year goals and 90 day sprints _ _ _ _ _ _ _ _ _ _
6) What is done in the prepare gate? -- Answer ✔✔ It's all about executing Action Plan
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
relentlessly
_
7) Common characteristics of value creators -- Answer ✔✔ 1) They do holistic
_ _ _ _ _ _ _ _ _ _ _ _
planning 2) Harmonize personal, financial, and biz 3) Personal aspirations and life
_ _ _ _ _ _ _ _ _ _ _ _
beyond biz 4) Mitigate risk 5) execute relentlessly well
_ _ _ _ _ _ _ _
8) ___ % of value of business tied to ___ assets -- Answer ✔✔ 80%/ intangible
_ _ _ _ _ _ _ _ _ _ _ _ _ _
, 9) __ % of BO indicate they have done no planning at all -- Answer ✔✔ 49%
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
10) __% of BO indicate they have no written transition plan -- Answer ✔✔ 83%
_ _ _ _ _ _ _ _ _ _ _ _ _
11) ___ % of BO indicate they have no life after business plan -- Answer ✔✔ 93%
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
12) What is a deliverable? -- Answer ✔✔ An outcome produced by an action. Ex) could
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
be a report, meeting, workshop, event
_ _ _ _ _
13) 3 Gates of the Value Acceleration Methodology -- Answer ✔✔ 1) Discover 2)
_ _ _ _ _ _ _ _ _ _ _ _ _
Prepare 3) Decide _ _
14) 2 Major Deliverables of Gate 1/Discover Gate -- Answer ✔✔ 1) Triggering Event 2)
_ _ _ _ _ _ _ _ _ _ _ _ _ _
Prioritized Action Plan _ _
15) What is the Triggering Event? -- Answer ✔✔ An independent personal, financial, and
_ _ _ _ _ _ _ _ _ _ _ _
_business assessment correlated to the business range of value
_ _ _ _ _ _ _ _
16) Why is the Triggering Event a supercharged valuation? -- Answer ✔✔ Bc it tells you
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
what business is worth today AND what it's potential BIC value may be
_ _ _ _ _ _ _ _ _ _ _ _
17) Triggering event triggers action ___ % of the time -- Answer ✔✔ 70
_ _ _ _ _ _ _ _ _ _ _ _
18) What are the 4 C's? -- Answer ✔✔ 1) Human Capital 2) Customer Capital 3)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Structural Capital 4) Social Capital. *Make up the sum of your intangible capital*
_ _ _ _ _ _ _ _ _ _ _ _
19) Percentage of biz that actually sell once made to market -- Answer ✔✔ 20-30%
_ _ _ _ _ _ _ _ _ _ _ _ _
20) Business owners have ___ percent of their assets tied up in biz -- Answer ✔✔ 80%
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
21) __ % of BO indicate they would like to transition in next 10 years -- Answer ✔✔
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
63%
22) ___ % of BO indicate they would like to transition in next 5 years -- Answer ✔✔
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
41%
