CFI CBCA COMPREHENSIVE STUDY GUIDE
103 Answered Questions with Detailed Explanations
UNIT 1: PROGRAM OVERVIEW & CERTIFICATION
REQUIREMENTS
1. What are the five steps to earning the CBCA certification?
ANSWER ✓ Step 1: Prep Courses (optional fundamentals review). Step 2: Complete 16
core courses and case studies. Step 3: Choose at least three elective courses. Step 4:
Pass the final exam (70% or higher required within 3 hours). Step 5: Receive blockchain-
verified digital certificate.
2. What score is required to pass individual course assessments versus the final
exam?
ANSWER ✓ Course assessments require 80% to qualify for the final exam. The final exam
requires 70% or higher to pass. Unlimited attempts are allowed on course assessments,
but the final exam has a strict 3-hour time limit with no extensions.
3. How many total study hours are estimated for completing the CBCA program?
ANSWER ✓ The estimated time needed is 80-100 hours, including watching lectures,
downloading files, completing exercises, and taking assessments.
4. What career paths are available to CBCA certificants?
ANSWER ✓ Common career paths include: Risk Manager & Credit Adjudicator,
Commercial Loan Broker, Private Lender, Credit Analyst, and Commercial Loan Officer.
UNIT 2: ASSESSING MANAGEMENT
5. Why should we assess management rather than just focusing on financials?
ANSWER ✓ Businesses often fail as a result of management weaknesses more than any
, other single factor. Management competence is a key driver of business results, and the
leadership team must execute the plan—we cannot judge a business purely from
financial statements.
6. What is the structured framework for assessing management?
ANSWER ✓ The framework uses Multi-Criteria Analysis with three components:
Attitudes/Character (current assessment), Strategy (looking forward), and Track Record
(looking back).
7. What is the ultimate goal when assessing management?
ANSWER ✓ Assessing whether management has the ability and skills to run the business
such that they will be able to repay the debt.
8. What are the four components of the Ansoff Matrix for assessing attitude to
growth?
ANSWER ✓ (1) MARKET PENETRATION: existing products, existing markets. (2)
PRODUCT DEVELOPMENT: new product, existing market. (3) MARKET DEVELOPMENT:
existing product, new market. (4) DIVERSIFICATION: new product, new market.
9. What is the Delta Model and what does it emphasize?
ANSWER ✓ The Delta Model is a strategy framework that places the customer at the
center of management. It examines primary options for establishing customer bonding
and links strategy with execution through alignment of adaptive processes.
10. What are the three levels of strategic frameworks?
ANSWER ✓ Corporate-level (Portfolio): managing multiple businesses. Business-level:
market positioning strategies for competitive advantage. Functional-level: activities
within and between functions to improve efficiency.
11. What four elements should be assessed when evaluating management's
strategy?
ANSWER ✓ Objectives (what are you trying to achieve?), Strategies (how will you achieve
objectives?), Measures (what are output and input measures?), Targets (quantifiable and
time-based).
12. Where can analysts find information to assess management's track record?
ANSWER ✓ Press Releases, Interviews, Articles, Social Media, Financial Statements,
Budgets, and Operational Data.
13. What financial trends should be examined when assessing management?
ANSWER ✓ Revenue, EBITDA, Free Cash Flow, Net Income, and Earnings per Share
forecasts indicate how hopeful management is about the business.
103 Answered Questions with Detailed Explanations
UNIT 1: PROGRAM OVERVIEW & CERTIFICATION
REQUIREMENTS
1. What are the five steps to earning the CBCA certification?
ANSWER ✓ Step 1: Prep Courses (optional fundamentals review). Step 2: Complete 16
core courses and case studies. Step 3: Choose at least three elective courses. Step 4:
Pass the final exam (70% or higher required within 3 hours). Step 5: Receive blockchain-
verified digital certificate.
2. What score is required to pass individual course assessments versus the final
exam?
ANSWER ✓ Course assessments require 80% to qualify for the final exam. The final exam
requires 70% or higher to pass. Unlimited attempts are allowed on course assessments,
but the final exam has a strict 3-hour time limit with no extensions.
3. How many total study hours are estimated for completing the CBCA program?
ANSWER ✓ The estimated time needed is 80-100 hours, including watching lectures,
downloading files, completing exercises, and taking assessments.
4. What career paths are available to CBCA certificants?
ANSWER ✓ Common career paths include: Risk Manager & Credit Adjudicator,
Commercial Loan Broker, Private Lender, Credit Analyst, and Commercial Loan Officer.
UNIT 2: ASSESSING MANAGEMENT
5. Why should we assess management rather than just focusing on financials?
ANSWER ✓ Businesses often fail as a result of management weaknesses more than any
, other single factor. Management competence is a key driver of business results, and the
leadership team must execute the plan—we cannot judge a business purely from
financial statements.
6. What is the structured framework for assessing management?
ANSWER ✓ The framework uses Multi-Criteria Analysis with three components:
Attitudes/Character (current assessment), Strategy (looking forward), and Track Record
(looking back).
7. What is the ultimate goal when assessing management?
ANSWER ✓ Assessing whether management has the ability and skills to run the business
such that they will be able to repay the debt.
8. What are the four components of the Ansoff Matrix for assessing attitude to
growth?
ANSWER ✓ (1) MARKET PENETRATION: existing products, existing markets. (2)
PRODUCT DEVELOPMENT: new product, existing market. (3) MARKET DEVELOPMENT:
existing product, new market. (4) DIVERSIFICATION: new product, new market.
9. What is the Delta Model and what does it emphasize?
ANSWER ✓ The Delta Model is a strategy framework that places the customer at the
center of management. It examines primary options for establishing customer bonding
and links strategy with execution through alignment of adaptive processes.
10. What are the three levels of strategic frameworks?
ANSWER ✓ Corporate-level (Portfolio): managing multiple businesses. Business-level:
market positioning strategies for competitive advantage. Functional-level: activities
within and between functions to improve efficiency.
11. What four elements should be assessed when evaluating management's
strategy?
ANSWER ✓ Objectives (what are you trying to achieve?), Strategies (how will you achieve
objectives?), Measures (what are output and input measures?), Targets (quantifiable and
time-based).
12. Where can analysts find information to assess management's track record?
ANSWER ✓ Press Releases, Interviews, Articles, Social Media, Financial Statements,
Budgets, and Operational Data.
13. What financial trends should be examined when assessing management?
ANSWER ✓ Revenue, EBITDA, Free Cash Flow, Net Income, and Earnings per Share
forecasts indicate how hopeful management is about the business.
