CEPA COMPREHENSIVE STUDY GUIDE 2026
FULLY SOLVED QUESTION SET
◉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
◉A business attractiveness score of 67% is considered: Answer: d.
Above average
,◉Why would an owner want to have a business valuation performed
on their company? Answer: a. Divorce
b. Ownership transfer to family
c. Installing an ESOP
d. All of the above (correct)
◉Which of the following is NOT a standard of value when it comes to
business valuation? Answer: b. Hypothetical value
◉Fair Market Standard of Value is defined as the price at which the
property would change hands between a "hypothetical" willing
buyer and a "hypothetical" willing seller. (T/F) Answer: True
◉The primary benefit of the Discounted Cash Flow (DCF) method of
valuation is that it represents a specific forecast of future financial
results. (T/F) Answer: True
◉Which of the following is not one of the three broad approaches to
determining value? Answer: a. Liquidity
◉In the income approach to business valuation, which method is
predicated on a specific future look at economic benefits? Answer:
d. Discounted cash flow method
,◉What are the two most common types of transactions during a
business sale? Answer: b. Asset Sale and Stock Sale
◉For valuation purposes, the financial results for closely held
companies are not often normalized for non recurring costs and
discretionary expenses. (T/F) Answer: False
◉How does creating a vision help focus a business owner? Answer:
a. Expresses personal values
b. Drives inspiration
c. Directs focus and movement forward
d. All of the above (correct)
◉In which gate of the Value Acceleration Methodology should you
create a prioritized action plan? Answer: a. Discover
◉What are the three key success areas a business owner's goals and
objectives should focus on? Answer: d. Business, Financial, and
Personal
◉When is a good time to establish goals and objectives with a
business owner within the Value Acceleration Methodology™?
, Answer: c. After discovering and discussing themes from the
Triggering Event with the businessowner
◉Which of the following is not a conflicting value system to be
considered when establishing goals and objectives? Answer: b.
Political
◉Which of the following is NOT a characteristic of a SMART goal?
Answer: b. Cost effective
◉When creating an action plan, you should aim to set no more than
five business and five personal actions to complete in ______. Answer:
c. 90-Day Sprints
◉Creating action plans is associated with which activity of
Relentless Execution? Answer: d. Alignment
◉Which activity do you need to complete to create personal and
business action plans? Answer: Establish personal and business
priorities
b. Determine and committing business resources
c. Define the personal financial deliverable or outcome expected
d. All of the above ( correct)
FULLY SOLVED QUESTION SET
◉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
◉A business attractiveness score of 67% is considered: Answer: d.
Above average
,◉Why would an owner want to have a business valuation performed
on their company? Answer: a. Divorce
b. Ownership transfer to family
c. Installing an ESOP
d. All of the above (correct)
◉Which of the following is NOT a standard of value when it comes to
business valuation? Answer: b. Hypothetical value
◉Fair Market Standard of Value is defined as the price at which the
property would change hands between a "hypothetical" willing
buyer and a "hypothetical" willing seller. (T/F) Answer: True
◉The primary benefit of the Discounted Cash Flow (DCF) method of
valuation is that it represents a specific forecast of future financial
results. (T/F) Answer: True
◉Which of the following is not one of the three broad approaches to
determining value? Answer: a. Liquidity
◉In the income approach to business valuation, which method is
predicated on a specific future look at economic benefits? Answer:
d. Discounted cash flow method
,◉What are the two most common types of transactions during a
business sale? Answer: b. Asset Sale and Stock Sale
◉For valuation purposes, the financial results for closely held
companies are not often normalized for non recurring costs and
discretionary expenses. (T/F) Answer: False
◉How does creating a vision help focus a business owner? Answer:
a. Expresses personal values
b. Drives inspiration
c. Directs focus and movement forward
d. All of the above (correct)
◉In which gate of the Value Acceleration Methodology should you
create a prioritized action plan? Answer: a. Discover
◉What are the three key success areas a business owner's goals and
objectives should focus on? Answer: d. Business, Financial, and
Personal
◉When is a good time to establish goals and objectives with a
business owner within the Value Acceleration Methodology™?
, Answer: c. After discovering and discussing themes from the
Triggering Event with the businessowner
◉Which of the following is not a conflicting value system to be
considered when establishing goals and objectives? Answer: b.
Political
◉Which of the following is NOT a characteristic of a SMART goal?
Answer: b. Cost effective
◉When creating an action plan, you should aim to set no more than
five business and five personal actions to complete in ______. Answer:
c. 90-Day Sprints
◉Creating action plans is associated with which activity of
Relentless Execution? Answer: d. Alignment
◉Which activity do you need to complete to create personal and
business action plans? Answer: Establish personal and business
priorities
b. Determine and committing business resources
c. Define the personal financial deliverable or outcome expected
d. All of the above ( correct)
