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CEPA Final Exam: Questions And Correct Answers
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CEPA Final Exam: Questions And Correct Answers
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CEPA Final Exam: Questions And Correct AnswersExit Planning (Richard Jackim) Right Ans - A. An exit plan asks and answers
all the business, personal, financial, legal and tax questions involved in
transitioning a privately-owned business
B. it includes contingencies for illness, divorce, burnout and death
C. Its purpose is to maximize the value of the business at the time of exit,
minimize taxes, ensure the owner is able to accomplish all of his personal and
financial goals in the process
Exit Planning (Chris Snider) Right Ans - combines the plan, concept, effort
and process into a clear, simple strategy to build a business that is
transferable through strong human, structural, customer and social captial.
the future of you, your family and your business are addressed by exit
planning through creating value today
Exit planning is _______________ strategy. Right Ans - Good business strategy
blue and ocean and innovation (blue ocean strategy) Right Ans - A. blue
ocean denotes an industry not in existence today
B. value innovation is a new way of thinking about and executing strategy that
results in blue ocean and a break from the competition
C. focus is on making competition irrelevant by creating a leap in value
Historical data on exits Right Ans - A. one year after selling, 3/4 owners
surveyed profoundly regretted it
B. 70-80% of businesses put on the market dont sell
C. only 30% of all family owned business survive into the second generation
Why many exits fail (per 2013 owner readiness survery) Right Ans - A.
66% are not familiar with all exit options
B. 78% have no formal transition advisory team
C. 83% have no written transition plan
D. 49% have done no planning at all
E. 93% have no formal life after plan
opportunities in exit planning Right Ans - A baby boomers own 63% of
private businesses in US
B. 76% of them plan to transition in next 10 years
, C. Represents a transfer of approximately 4.5 million businesses over $10
trillion of wealth
mission of EPI and CEPAs is to the change the outcome. CEPAs do this by...
Right Ans - A. Creating awareness
B. Fostering team plau
C. Adopting a process
Challenges that must be oversome include Right Ans - A. Boomers dont
want to exit
B. 50% of exits are caused by 1 of the 5 D's (death, disability, divorce, distress,
disagreement)
C. owners are leaving money on the table because they are focused on income
generation not enterpeise value
Advisors of the future change owner/peer paradigms about what exit
planning actually is... Right Ans - A. exit planning is a business strategy
B. value is all about transferability
C. they work from a common framework that focuses on value growth and
aligning business, personal, financial goals
Exit planning ecosystem defined Right Ans - a system, or group of
interconnected disciplines, formed by the interaction of a collaborative, like-
minded community of professional advisors, with a common goal to grow,
preserve, and transition wealth for business owners
The advisor of the future... Right Ans - A. focues on value creation
B. acts as the quarterback
C. oversees the master plan
D. helps other advisors get engaged and resolve issues
54321 Right Ans - FIve Stages
Four Capitals
Three Gates
Two Paths
One Goal
Why focus on value vs just income? Right Ans - A. you can have both
income and value but you need to focus on value first
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