CEPA EXAM UPDATED EXAM
SCRIPT 2026 TEST PAPER
QUESTIONS AND SOLUTIONS
GRADED A+
◉ 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?
Answer: 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?
d. All the above (correct)
◉ Complete the following quote: "Luck is ___ meeting opportunity."
Answer: Preparation
◉ four intangible capitals (The 4Cs) include Human, Structural, Social,
and Customer capitals. (T/F)
Answer: TRUE
◉ Which of the following statements is false?
Answer: c. The Baby Boomer generation doesn't need to be thinking
about exit planning yet
,◉ Complete this sentence: A successful exit strategy balances the "____
Legs of the Stool."
Answer: b. Three
(Business, Financial, and Personal)
◉ What is one of the main causes of "sellers' cold feet" during the sale
of a business?
Answer: a. Lack of personal planning
◉ What is the first stage in the "Five Stages of Value Maturity?"
Answer: c. Identify
◉ When ranking a business's intangible capitals, what is the main
purpose of using the common sense scoring of 1-6?
Answer: c. It forces you to not choose "average"
◉ A key difference between lifestyle businesses and value creator
businesses is that value creator businesses usually generate better
income. (T/F)
Answer: True
◉ Which of the following is not a gate in the Value Acceleration
Methodology?
Answer: b. Plan
,◉ 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?
Answer: a. 7 million
◉ The typical business owner has ____% of their net worth tied up
within their business.
Answer: a. 80%
◉ What is a benefit of prioritizing wealth management for a business
owner?
Answer: a. Tax efficiency
b. Insurances in place (Risk Management)
c. Structured cash flow
d. All of the above (correct)
◉ Life insurance, health insurance, and product liability insurance all
fall under which section of the financial planning process?
Answer: b. Risk Management
◉ Which of the following best describes the components of integrated
wealth management for individuals?
Answer: d. Retirement planning,risk management, estate planning,
portfolio management
, ◉ A business owner only needs one advisor to complete their exit
planning process. (T/F)
Answer: False!
◉ Typical estate planning conversations discuss how to preserve a
decedent spouse's "coupon." (T/F)
Answer: 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.
Answer: c. Present interest gift
◉ Which of the following statements is not true?
Answer: a. All states have an estate tax
◉ The main goal of minimizing wealth tax is to:
Answer: c. Maximize the client's portion of earnings and minimize the
IRS's portion
◉ What does the acronym "NING" stand for when looking at income
tax planning options?
Answer: b. Nevada Incomplete Non-Grantor Trust
◉ Which of the following is a disadvantage of an intentionally defective
grantor trust (IDGT)?
SCRIPT 2026 TEST PAPER
QUESTIONS AND SOLUTIONS
GRADED A+
◉ 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?
Answer: 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?
d. All the above (correct)
◉ Complete the following quote: "Luck is ___ meeting opportunity."
Answer: Preparation
◉ four intangible capitals (The 4Cs) include Human, Structural, Social,
and Customer capitals. (T/F)
Answer: TRUE
◉ Which of the following statements is false?
Answer: c. The Baby Boomer generation doesn't need to be thinking
about exit planning yet
,◉ Complete this sentence: A successful exit strategy balances the "____
Legs of the Stool."
Answer: b. Three
(Business, Financial, and Personal)
◉ What is one of the main causes of "sellers' cold feet" during the sale
of a business?
Answer: a. Lack of personal planning
◉ What is the first stage in the "Five Stages of Value Maturity?"
Answer: c. Identify
◉ When ranking a business's intangible capitals, what is the main
purpose of using the common sense scoring of 1-6?
Answer: c. It forces you to not choose "average"
◉ A key difference between lifestyle businesses and value creator
businesses is that value creator businesses usually generate better
income. (T/F)
Answer: True
◉ Which of the following is not a gate in the Value Acceleration
Methodology?
Answer: b. Plan
,◉ 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?
Answer: a. 7 million
◉ The typical business owner has ____% of their net worth tied up
within their business.
Answer: a. 80%
◉ What is a benefit of prioritizing wealth management for a business
owner?
Answer: a. Tax efficiency
b. Insurances in place (Risk Management)
c. Structured cash flow
d. All of the above (correct)
◉ Life insurance, health insurance, and product liability insurance all
fall under which section of the financial planning process?
Answer: b. Risk Management
◉ Which of the following best describes the components of integrated
wealth management for individuals?
Answer: d. Retirement planning,risk management, estate planning,
portfolio management
, ◉ A business owner only needs one advisor to complete their exit
planning process. (T/F)
Answer: False!
◉ Typical estate planning conversations discuss how to preserve a
decedent spouse's "coupon." (T/F)
Answer: 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.
Answer: c. Present interest gift
◉ Which of the following statements is not true?
Answer: a. All states have an estate tax
◉ The main goal of minimizing wealth tax is to:
Answer: c. Maximize the client's portion of earnings and minimize the
IRS's portion
◉ What does the acronym "NING" stand for when looking at income
tax planning options?
Answer: b. Nevada Incomplete Non-Grantor Trust
◉ Which of the following is a disadvantage of an intentionally defective
grantor trust (IDGT)?
