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CEPA course-Questions & Answers
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CEPA course-Questions & Answers
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CEPA course-Questions & AnswersLife insurance, health insurance, and product liability insurance all fall under which section of
the financial planning process? Correct Ans-b. Risk Management
Which of the following best describes the components of integrated wealth management for
individuals? Correct Ans-d. Retirement planning,risk management, estate planning,
portfolio management
A business owner only needs one advisor to complete their exit planning process. (T/F)
Correct Ans-False!
Typical estate planning conversations discuss how to preserve a decedent spouse's "coupon."
(T/F) Correct Ans-True
A _____ gift is one in which the person who received the gift has the unrestricted right to the
immediate possession and use of it. Correct Ans-c. Present interest gift
Which of the following statements is not true? Correct Ans-a. All states have an estate tax
The main goal of minimizing wealth tax is to: Correct Ans-c. Maximize the client's portion
of earnings and minimize the IRS's portion
, CEPA course-Questions & Answers
What does the acronym "NING" stand for when looking at income tax planning options?
Correct Ans-b. Nevada Incomplete Non-Grantor Trust
Which of the following is a disadvantage of an intentionally defective grantor trust (IDGT)?
Correct Ans-d. Client cannot be a beneficiary
A strategy which makes assets difficult or impossible to reach is called: Correct Ans-d.
Asset protection
What are the benefits for the business owner and family for integrating charitable
contributions? Correct Ans-a. Wanting to transfer values and purpose, not just assets
b. Creating intergenerational common ground to collaborate, make joint decisions, gain
confidence, develop/fulfill potential c. Developing an emotional and functional bridge
between wealth, purpose, and society
d. All of the above (correct)
What survey indicated that 99% of business owners at least in some way agreed that "having
a transition strategy is important for my future and the future of my business?" Correct
Ans-State of Owner Readiness
It's important to not just tell an owner the right answer, but to ask them the right question.
Which is an example of the "right question" to ask a business owner client? Correct Ans-a.
What is the strength of your intangible capital?
b. What is your biggest pain point and biggest desire?
, CEPA course-Questions & Answers
c. What deal structure are you looking for when selling?
d. All the above (correct)
Complete the following quote: "Luck is ___ meeting opportunity." Correct Ans-Preparation
four intangible capitals (The 4Cs) include Human, Structural, Social, and Customer capitals.
(T/F) Correct Ans-TRUE
Which of the following statements is false? Correct Ans-c. The Baby Boomer generation
doesn't need to be thinking about exit planning yet
Complete this sentence: A successful exit strategy balances the "____ Legs of the Stool."
Correct Ans-b. Three
(Business, Financial, and Personal)
What is one of the main causes of "sellers' cold feet" during the sale of a business? Correct
Ans-a. Lack of personal planning
What is the first stage in the "Five Stages of Value Maturity?" Correct Ans-c. Identify
When ranking a business's intangible capitals, what is the main purpose of using the common
sense scoring of 1-6? Correct Ans-c. It forces you to not choose "average"
, CEPA course-Questions & Answers
A key difference between lifestyle businesses and value creator businesses is that value
creator businesses usually generate better income. (T/F) Correct Ans-True
Which of the following is not a gate in the Value Acceleration Methodology? Correct Ans-
b. Plan
If the potential value for a business is 16 million, and it's currently valued at 9 million, what is
the value gap of the business? Correct Ans-a. 7 million
The typical business owner has ____% of their net worth tied up within their business.
Correct Ans-a. 80%
What is a benefit of prioritizing wealth management for a business owner? Correct Ans-a.
Tax efficiency
b. Insurances in place (Risk Management)
c. Structured cash flow
d. All of the above (correct)
Of the 250,000 US companies with $5M to $100M in revenue set to transition by 2030, how
many will actually sell for desired value? Correct Ans-b. 14,000
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