CEPA Certified Exit Planning Advisor
EXAM Questions & - ANSWERs | 100%
Verified solutions |Questions with
Correct - ANSWERs 2026 latest
update!!
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?" -
- ANSWER-State of Owner Readiness
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)? - - ANSWER-d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called: - - ANSWER-d.
Asset protection
, What are the benefits for the business owner and family for integrating charitable
contributions? - - ANSWER-a. Wanting to transfer values and purpose, not just assets
b. Creating intergenerational common ground to collaborate, make joint decisions, gain
confidence, develop/fulfill potential c. Developing an emotional and functional bridge
between wealth, purpose, and society
d. All of the above (correct)
Of the 250,000 US companies with $5M to $100M in revenue set to transition by 2030,
how many will actually sell for desired value? - - ANSWER-b. 14,000
As categorized by the Fisher College of Business at the Ohio State University, what are
the three types of companies in the marketplace? - - ANSWER-d. Investors, Innovators,
Efficiency Experts
What are some categories to evaluate and compare to other companies in the
marketplace? - - ANSWER-a. Market growth
b. Equipment condition
c. Products and sales
d. All of the above (correct)
What is the timeframe most private companies can increase their value and should
begin their value growth? - - ANSWER-a. Three to five years
A "deliverable"includes which of the following characteristics? - - ANSWER-a.
Represents the conclusion of an assignment, task, or action
b. Displays what the client is paying for
c. Provides recommendations on the next set of actions the client should take
d. All the above (correct)
What is always the first deliverable in the Value Acceleration Methodology™? - -
ANSWER-d. The Triggering Event
If you were to come into an engagement and a business valuation had already been
completed, there would be no need to complete a personal, financial, business
attractiveness and readiness assessment. (T/F) - - ANSWER-False
In what gate would you utilize a business valuation? - - ANSWER-d. Gate 1
What is a common exit readiness issue? - - ANSWER-a. No personal goals and
objectives
b. Shareholders/family members aren't on the same page
c. Credibility of financial information
d. All of the above (correct)
Year over year growth in sales and profit would benefits a company's: - - ANSWER-
Attractiveness
EXAM Questions & - ANSWERs | 100%
Verified solutions |Questions with
Correct - ANSWERs 2026 latest
update!!
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?" -
- ANSWER-State of Owner Readiness
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)? - - ANSWER-d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called: - - ANSWER-d.
Asset protection
, What are the benefits for the business owner and family for integrating charitable
contributions? - - ANSWER-a. Wanting to transfer values and purpose, not just assets
b. Creating intergenerational common ground to collaborate, make joint decisions, gain
confidence, develop/fulfill potential c. Developing an emotional and functional bridge
between wealth, purpose, and society
d. All of the above (correct)
Of the 250,000 US companies with $5M to $100M in revenue set to transition by 2030,
how many will actually sell for desired value? - - ANSWER-b. 14,000
As categorized by the Fisher College of Business at the Ohio State University, what are
the three types of companies in the marketplace? - - ANSWER-d. Investors, Innovators,
Efficiency Experts
What are some categories to evaluate and compare to other companies in the
marketplace? - - ANSWER-a. Market growth
b. Equipment condition
c. Products and sales
d. All of the above (correct)
What is the timeframe most private companies can increase their value and should
begin their value growth? - - ANSWER-a. Three to five years
A "deliverable"includes which of the following characteristics? - - ANSWER-a.
Represents the conclusion of an assignment, task, or action
b. Displays what the client is paying for
c. Provides recommendations on the next set of actions the client should take
d. All the above (correct)
What is always the first deliverable in the Value Acceleration Methodology™? - -
ANSWER-d. The Triggering Event
If you were to come into an engagement and a business valuation had already been
completed, there would be no need to complete a personal, financial, business
attractiveness and readiness assessment. (T/F) - - ANSWER-False
In what gate would you utilize a business valuation? - - ANSWER-d. Gate 1
What is a common exit readiness issue? - - ANSWER-a. No personal goals and
objectives
b. Shareholders/family members aren't on the same page
c. Credibility of financial information
d. All of the above (correct)
Year over year growth in sales and profit would benefits a company's: - - ANSWER-
Attractiveness
