CFI CBCA FINAL EXAM STUDY GUIDE 2026 COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS GRADED A+ GUARANTEED PASS
Management attitudes toward risk
Objective: to assess management knowledge of sector, business risk
and track record in taking action
What is your strategy to counter the threat of competition?
What strategy would you adopt if you lost your major customer(s)
tomorrow?
Do you have a disaster response plan? How much insurance do you
have?
The answers should show detailed understanding of how to manage
risks in the business, steps taken to decrease the chances of risks
being realized, and a response plan.
Attitude to growth
Objective: to assess management attitude towards growth
Do you want to expand the business?
Are there plans to expand into new home or export markets?
Is innovation encouraged?
Are new products/services being developed?
Are there management resources and experience available to
expand?
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,Looking at growth, you can determine if management is satisfied
with their current operations or want to expand by offering new
products or services.
Internal barriers to growth
Percentage of respondents citing factor as important
(least to greatest)
Preference to maintain small size, lack of successful innovation,
reluctance to take on new debt, reluctance to dilute ownership,
management team too small/stretched
Attitude to ownership
Objective: to assess management attitude to ownership and
succession planning
Do you have outside investors in the business? What kind?
Do you plan to sell to an outside party?
Do you plan to sell to the employees?
When do you plan to retire?
What is the view on succession planning, and how does ownership
impact the strategy?
Ownership styles
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, Size vs. Exit method
Dynast
Aim to grow; exit by family succession
Business-oriented
Aim to grow; exit by sale of the business or flotation
Family-oriented
Remain at current size; exit by family succession
Protectionists
Remain at current size; exit by sale of the business or flotation
Opportunities for competitive position
-expand the business or maintain current size
-minimize shareholdings outside the family or have outside investors
-maximize personal income & investment or protect investment and
pass to next generation
-prepared to use all available resources for growth or reluctant to
push resources harder
P a g e 3 | 20
AND CORRECT DETAILED ANSWERS GRADED A+ GUARANTEED PASS
Management attitudes toward risk
Objective: to assess management knowledge of sector, business risk
and track record in taking action
What is your strategy to counter the threat of competition?
What strategy would you adopt if you lost your major customer(s)
tomorrow?
Do you have a disaster response plan? How much insurance do you
have?
The answers should show detailed understanding of how to manage
risks in the business, steps taken to decrease the chances of risks
being realized, and a response plan.
Attitude to growth
Objective: to assess management attitude towards growth
Do you want to expand the business?
Are there plans to expand into new home or export markets?
Is innovation encouraged?
Are new products/services being developed?
Are there management resources and experience available to
expand?
P a g e 1 | 20
,Looking at growth, you can determine if management is satisfied
with their current operations or want to expand by offering new
products or services.
Internal barriers to growth
Percentage of respondents citing factor as important
(least to greatest)
Preference to maintain small size, lack of successful innovation,
reluctance to take on new debt, reluctance to dilute ownership,
management team too small/stretched
Attitude to ownership
Objective: to assess management attitude to ownership and
succession planning
Do you have outside investors in the business? What kind?
Do you plan to sell to an outside party?
Do you plan to sell to the employees?
When do you plan to retire?
What is the view on succession planning, and how does ownership
impact the strategy?
Ownership styles
P a g e 2 | 20
, Size vs. Exit method
Dynast
Aim to grow; exit by family succession
Business-oriented
Aim to grow; exit by sale of the business or flotation
Family-oriented
Remain at current size; exit by family succession
Protectionists
Remain at current size; exit by sale of the business or flotation
Opportunities for competitive position
-expand the business or maintain current size
-minimize shareholdings outside the family or have outside investors
-maximize personal income & investment or protect investment and
pass to next generation
-prepared to use all available resources for growth or reluctant to
push resources harder
P a g e 3 | 20
