CEPA Exam Prep & CE
Study online at https://quizlet.com/_fac8qw
1. What percentage of privately held businesses that are offered for sale each
year ultimately do not sell?
A) 20%
B) 40%
C) 50%
D) 80%: D) 80%
2. According to the Family Firm Institute, what percentage of family transitions
survive into the second generation?
A) 20%
B) 30%
C) 50%
D) 70%: B) 30%
3. According to EPI's first national State of Owner Readiness Survey, what per-
centage of business owners have done no exit planning
at all?
A) 99%
B) 40%
C) 83%
D) 49%: D) 49%
4. Which of the following is not one of the five Ds?
A) Distress
B) Decide
C) Divorce
D) Death: B) Decide
5. Business owners are leaving dollars on the table because they are not focus-
ing on what?
A) Family unity
B) Sales and income
C) Enterprise value
D) Creating an Exit Plan: C) Enterprise value
6. The Advisor of the Future needs to get owners and advisors to make several
paradigm shifts for exit planning and value acceleration
, CEPA Exam Prep & CE
Study online at https://quizlet.com/_fac8qw
to work to the benefit of owners and their families. What is the first paradigm
shift that needs to be made?
A) Focus on enterprise value
B) Adopt a process and work from a common framework
C) Exit planning is good business strategy
D) All of the above: C) Exit planning is good business strategy
7. The Value Acceleration Methodology™ is based on a management philosophy
called what?
A) Cognitive theory
B) Master planning
C) Business enterprise
D) Business canvas: B) Master planning
8. Which of the following is not a gate in the Value Acceleration Methodology?
A) Prepare
B) Plan
C) Discover
D) Decide: B) Plan
9. Which of the following is a benefit of focusing on value?
A) Very predictable results
B) Gets employees thinking like owners
C) Mitigates risk
D) All of the above: D) All of the above
10. The "Triggering Event" is delivered in what gate of the Value Acceleration
Methodology?
A) Discover
B) Prepare
C) Decide
D) All of the above: A) Discover
11. What is the total timeframe it typically takes to move a business owner
through the full Value Acceleration Methodology process?
A) Six months to one year
B) Minimum of one year
, CEPA Exam Prep & CE
Study online at https://quizlet.com/_fac8qw
C) One to three years
D) 3.5 years or more: D) 3.5 years or more
12. Personal liability insurance is a supplementary insurance that is not impera-
tive for business owners to own since most homeowners
and car insurance policies are comprehensive and cover similar liabilities.
A) True
B) False: B) False
13. Wealth management includes various components of investment manage-
ment and comprehensive planning such as:
A) Portfolio management
B) Retirement planning
C) Risk management
D) Estate planning
E) All of the above: E) All of the above
14. Which of the following is an example of lacking portfolio diversification?:
A) An appropriate three to six month cash reserve
B) Too much US Large Cap or Private Company Stock
C) High expense ratios
D) Exposure to Emerging Markets: B) Too much US Large Cap or Private Company Stock
15. For a business owner to minimize estate tax liabilities and ensure specificity
for control and protections of assets before and after
death, they should have:
A) Will
B) Power of attorney for financial transactions
C) Revocable living trust
D) All of the above: D) All of the above
16. A retirement cash flow plan, which details the amount of, additions to and
uses of investment assets, is most accurate when the
following is used in the analysis:
A) A static rate of return
B) Statistical modeling
C) Historical S&P500 rate of return
, CEPA Exam Prep & CE
Study online at https://quizlet.com/_fac8qw
D) The historical average rate of return on the client's existing portfolio: B)
Statistical modeling
17. If estate is less than $5 million ($10 million for a married couple), do I still
need estate planning?
A) Yes
B) No: A) Yes
18. What is the primary objective for most Irrevocable Trusts or Family Limited
Partnerships?
A) Remove the business (or other asset) and future appreciation out of the
estate
B) Pay less corporate income tax to state
C) Pass 100% of the estate to family members
D) All of the above: A) Remove the business (or other asset) and future appreciation out of the estate
19. What is an advantage of moving assets to a trust?
A) Assets in trust avoid probate
B) Personal details about the estate do not become public
C) Make sure assets go where you want them
D) All of the above: D) All of the above
20. Which of the following is not considered an advantage of Family Limited
Partnership?
A) Consolidates the ownership of multiple assets into one entity
B) Can be used as a vehicle to transfer wealth and ownership to younger family
members
C) Assets are contributed at Fair Market Value
D) Give away value of company and future appreciation without giving away
control: C) Assets are contributed at Fair Market Value
21. Asset protection is a continuum that includes balancing equity, asset, and
jurisdictional changes.
A) True
B) False: A) True
22. In 2016 charitable gifts exceeded what dollar amount?
A) $400 million
Study online at https://quizlet.com/_fac8qw
1. What percentage of privately held businesses that are offered for sale each
year ultimately do not sell?
A) 20%
B) 40%
C) 50%
D) 80%: D) 80%
2. According to the Family Firm Institute, what percentage of family transitions
survive into the second generation?
A) 20%
B) 30%
C) 50%
D) 70%: B) 30%
3. According to EPI's first national State of Owner Readiness Survey, what per-
centage of business owners have done no exit planning
at all?
A) 99%
B) 40%
C) 83%
D) 49%: D) 49%
4. Which of the following is not one of the five Ds?
A) Distress
B) Decide
C) Divorce
D) Death: B) Decide
5. Business owners are leaving dollars on the table because they are not focus-
ing on what?
A) Family unity
B) Sales and income
C) Enterprise value
D) Creating an Exit Plan: C) Enterprise value
6. The Advisor of the Future needs to get owners and advisors to make several
paradigm shifts for exit planning and value acceleration
, CEPA Exam Prep & CE
Study online at https://quizlet.com/_fac8qw
to work to the benefit of owners and their families. What is the first paradigm
shift that needs to be made?
A) Focus on enterprise value
B) Adopt a process and work from a common framework
C) Exit planning is good business strategy
D) All of the above: C) Exit planning is good business strategy
7. The Value Acceleration Methodology™ is based on a management philosophy
called what?
A) Cognitive theory
B) Master planning
C) Business enterprise
D) Business canvas: B) Master planning
8. Which of the following is not a gate in the Value Acceleration Methodology?
A) Prepare
B) Plan
C) Discover
D) Decide: B) Plan
9. Which of the following is a benefit of focusing on value?
A) Very predictable results
B) Gets employees thinking like owners
C) Mitigates risk
D) All of the above: D) All of the above
10. The "Triggering Event" is delivered in what gate of the Value Acceleration
Methodology?
A) Discover
B) Prepare
C) Decide
D) All of the above: A) Discover
11. What is the total timeframe it typically takes to move a business owner
through the full Value Acceleration Methodology process?
A) Six months to one year
B) Minimum of one year
, CEPA Exam Prep & CE
Study online at https://quizlet.com/_fac8qw
C) One to three years
D) 3.5 years or more: D) 3.5 years or more
12. Personal liability insurance is a supplementary insurance that is not impera-
tive for business owners to own since most homeowners
and car insurance policies are comprehensive and cover similar liabilities.
A) True
B) False: B) False
13. Wealth management includes various components of investment manage-
ment and comprehensive planning such as:
A) Portfolio management
B) Retirement planning
C) Risk management
D) Estate planning
E) All of the above: E) All of the above
14. Which of the following is an example of lacking portfolio diversification?:
A) An appropriate three to six month cash reserve
B) Too much US Large Cap or Private Company Stock
C) High expense ratios
D) Exposure to Emerging Markets: B) Too much US Large Cap or Private Company Stock
15. For a business owner to minimize estate tax liabilities and ensure specificity
for control and protections of assets before and after
death, they should have:
A) Will
B) Power of attorney for financial transactions
C) Revocable living trust
D) All of the above: D) All of the above
16. A retirement cash flow plan, which details the amount of, additions to and
uses of investment assets, is most accurate when the
following is used in the analysis:
A) A static rate of return
B) Statistical modeling
C) Historical S&P500 rate of return
, CEPA Exam Prep & CE
Study online at https://quizlet.com/_fac8qw
D) The historical average rate of return on the client's existing portfolio: B)
Statistical modeling
17. If estate is less than $5 million ($10 million for a married couple), do I still
need estate planning?
A) Yes
B) No: A) Yes
18. What is the primary objective for most Irrevocable Trusts or Family Limited
Partnerships?
A) Remove the business (or other asset) and future appreciation out of the
estate
B) Pay less corporate income tax to state
C) Pass 100% of the estate to family members
D) All of the above: A) Remove the business (or other asset) and future appreciation out of the estate
19. What is an advantage of moving assets to a trust?
A) Assets in trust avoid probate
B) Personal details about the estate do not become public
C) Make sure assets go where you want them
D) All of the above: D) All of the above
20. Which of the following is not considered an advantage of Family Limited
Partnership?
A) Consolidates the ownership of multiple assets into one entity
B) Can be used as a vehicle to transfer wealth and ownership to younger family
members
C) Assets are contributed at Fair Market Value
D) Give away value of company and future appreciation without giving away
control: C) Assets are contributed at Fair Market Value
21. Asset protection is a continuum that includes balancing equity, asset, and
jurisdictional changes.
A) True
B) False: A) True
22. In 2016 charitable gifts exceeded what dollar amount?
A) $400 million
