Exam (elaborations)
CEPA Term- Session 5 Questions with Complete Solutions
- Course
- Institution
CEPA Term- Session 5 Questions with Complete Solutions
[Show more]
Seller
Follow
Content preview
CEPA Term- Session 5 Questions with CompleteSolutions
What is the common goal of the team, no matter who is in the door first? Correct Ans-Get
the owner to the TRIGGERING EVENT!
What are 4 ways you can refocus the team to attentiveness: Correct Ans-- Set and publish
clear goals
- Publish declaration of results
- Create results-based rewards
- Lead for results
True or false: Teams help deliver a better-quality product to the business owner because they
create synergy, thus generating performance greater than the sum of the performance of its
individual members. Correct Ans-True
What are three good methods for building trust among team members? Correct Ans-1)
Share common experiences
2) Become familiar with how each member prefers to communicate and make decisions
3) Get to know one another socially
What is are corrosive elements within a team? Correct Ans-A) Absence of trust
B) Conflict avoidance
C) Ambiguity
, CEPA Term- Session 5 Questions with Complete
Solutions
D) Lack of accountability
What are cons/disadvantages of ESOPS? Correct Ans-•ESOP can only pay Fair Market Value
o Strategic premium might be gained by sale to industry participant or 'roll-up'
• Not an appropriate liquidity strategy for a company with a weak management team
• Regulatory Environment [DOL] can be complex
• Owners may not get 100% "cash out" at closing
o Even with bank borrowing, a 100% sale will require taking back a "seller note" for a portion
of the sale price
• Repurchase Obligation post-formation must be planned for by the Company
What is the standard of value for ESOPS? Correct Ans-Standard of Value for ESOPS = FMV
(for the IRS), plus other considerations like enterprise value and Lack of marketability
discount
State of Owner Readiness Survey And Teams (2017, Twin Cities Results):
____% of business owners indicated they have not established a formal transition advisory
team Correct Ans-74% of business owners indicated they have not established a formal
transition advisory team
State of Owner Readiness Survey And Teams (2017, Twin Cities Results):
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77764 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now