File Info
| Exam | Certified Valuation Analyst |
| Number | CVA |
| File Name | Financial.CVA.BrainDumps.2019-05-02.149q.vcex |
| Size | 255 KB |
| Posted | May 02, 2019 |
| Download | Financial.CVA.BrainDumps.2019-05-02.149q.vcex |
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Demo Questions
Question 1
S corporations, limited liability corporations, limited liability partnerships, family limited partnerships, professional corporations, real estate investment trust, investment companies registered under the investment company act of 1940 and personal holding companies are the examples of:
- General and limited partnerships
- Cooperatives
- Entities’ structures giving rise to special legal or tax considerations (specified structure)
- Companies following valuation standards
Correct answer: C
Question 2
Valuation of ___________must be specified. For example, the assignment might include language such as” ...engaged to estimate the fair market value of the fixed assets, inventory, and goodwill, on a going-concern basis of...”
- Assets
- Securities
- Cooperatives
- Partnerships
Correct answer: A
Question 3
Unfortunately, the term enterprise value is used, at best, very ambiguously and, at worst, very carelessly. It means different things to different people, each of whom many believe that his or her definition is the right definition. It is generally used to represent some sort of ________of the company and is often used as a synonym for_______.
- Average value, Market value
- Aggregate value, Market value of invested capital (MVIC)
- Partial interest, Aggregate value
- Specific ownership interest subject to appraisal, Equity or invested capital
Correct answer: B
Question 4
The primary ownership interest characteristics that need to be addressed in almost every business valuation are the following EXCEPT:
- Control or minority valuation basis (not necessarily a black-and–white issue ____there may be elements of control without absolute control
- Degree of marketability
- Fair market value
- Fair market value on a nonmarketable, non-controlling ownership interest basis.
Correct answer: CD
Question 5
In a marital dissolution the parties may be concerned with the change in value that occurred during the marriage. In estate cases, the trustee, the executer, or personal representative will consider adopting the “alternative valuation date” (i.e. six months after the date of death) to determine which is more advantageous. These are the examples of:
- Situations identifying valuation date
- Situations having more than one valuation dates
- Litigated cases
- Universally applicable methods to finalize valuation date
Correct answer: B
Question 6
In ________cases, the valuation date itself is an issue to be resolved by the court. In such situations, the appraiser must be prepared to address the valuation as of several dates, sometimes without knowing which date the court determined to be relevant until after the judgment is rendered. Since the choice of valuation date in such cases is a legal matter.
- Litigated cases
- Estate tax cases
- Enterprise value identification cases
- Cooperatives
Correct answer: A
Question 7
Valuation reports should contain a set of limiting conditions, and one of the typical limiting conditions is as follows:
- Legal and estate tax factors
- The valuation is valid only for the valuation date or dates specified herein. No other purpose is intended or should be inferred
- Litigation over business valuation is commonplace
- The purpose of the valuation encompasses the use to which the valuation exercise is expected to be put
Correct answer: B
Question 8
Statutory law
Case law
Administrative rulings
Company documents
Contracts between parties’ precedent established by prior transactions Legal documents. These are some of the most important sources of guidance as to:
- The applicable standard and premises of value for the given situation.
- The appraiser’s experience and judgment.
- The selection of appropriate premise
- The value of the same business enterprise
Correct answer: A
Question 9
The valuation opinion repot will typically include the following sections EXCEPT:
- A valuation opinion letter summarizing the valuation procedures and conclusions
- Several sections summarizing the relevant valuation theory, methodology, procedures, analyses, and conclusions
- A listing of the data and documents relied upon by the appraiser
- legal case documents
Correct answer: D
Question 10
One of the most important tools for conducting a business valuation thoroughly and on a timely basis is a proper schedule. Most first-time, or in frequent, business valuation clients (and their attorneys) tend to underestimate the amount of lead time necessary for the appraiser to prepare a through and professional opinion. Scheduling problems often arise because:
- The client delays in committing to the project hoping that the valuation problem will go away.
- A major change in some aspect of assignment midway through the project
- The client is not having awareness regarding valuation standards and selection criteria
- Of some external pressures on the client
Correct answer: AB
