SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Certified Exit Planner
Start Test
Study First
Subject
:
certifications
Instructions:
Answer 27 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Gives clients clear understanding of what they need and what the business needs to meet their personal financial goals - Provides a snapshot of the clients' current state of personal financials.
Benefits (to Biz Owners) of Setting Goals
Transfer to Children: Disadvantages
Advantages of Using an Experienced Financial Planner
If clients don't understand advantages and disadvantages of each choice
2. ESOP loan in a 100% ownership transaction usually secured by personal assets or guaranteed by selling owner - Seller note still includes risk of non-payment - Complexity and expense occur before owner achieves liquidity event (contrast with third par
ESOPs: Disadvantages
Owners must choose from a limited number of possible successors
Sample FNA components
Benefits (to Biz Owners) of Setting Goals
3. Fulfills personal goals of keeping the business and family together. - Provides financial well-being for younger family members unable to earn comparable income from outside employment. - Allows owners to stay active in the business with their childr
Probing Questions for the client
Benefits (to Biz Owners) of Setting Goals
Transfer to Children: Advantages
Info needed to determine the money that Biz Owner needs
4. A child or children (or other family members) - A co-owner or co-owners - An unrelated third party - An Employee Stock Ownership Plan (ESOP)
Financial Planning Factors to Consider
Sale to Employees: Advantages
Owners must choose from a limited number of possible successors
Five important pieces of information to be collected from the client
5. Written Plan based on owner objectives and includes accountability checklist - Multi-disciplinary advisor team or assemblage of advisors working together - Strong management team - Strong cash flow - Time.
Role of the Financial Planner
Exit Plan
Owners must choose from a limited number of possible successors
Five Essential Elements of Successful Exit Plan
6. The owner's retirement income needs based on current lifestyle expenditures. (Owners must develop that personal budget they've resolved to develop... for the past 15 years!); - Inflation Assumptions - Size of Current Investments - Investment growth a
Sale to Employees: Disadvantages
Important Elements of the financial analysis
Advantages of Using an Experienced Financial Planner
Info needed to determine the money that Biz Owner needs
7. Favorable tax treatments for both buyer (ESOP) and seller - Benefits ALL employees.
ESOPs: Advantages
If clients don't understand advantages and disadvantages of each choice
Sale to Employees: Advantages
Financial Planning Factors to Consider
8. Regardless of what the buyer says - the personality and culture of the owner's business will undergo a radical change. The buyer would not buy the business unless he or she is convinced that the company can be improved through change. Maintaining the
Third Party Sale: Disadvantages
Probing Questions for the client
Sale to Employees: Disadvantages
Five Essential Elements of Successful Exit Plan
9. Have you identified your exit path and/or successor? - Do you know how much money you need - on an annual basis - after you leave your business to live comfortably in your post-business life? - Have you established the date (ex: January 15 - 2010) y
Establishing Universal Objectives
Probing Questions for the client
Important Elements of the financial analysis
Benefits of Financial Needs Analysis (FNA)
10. Deal Structure - Salary Compensation - Deferred Compensation
ESOPs: Disadvantages
Five important pieces of information to be collected from the client
Sample FNA components
Benefits (to Biz Owners) of Setting Goals
11. Determines Objectives - Interprets the Data - Analyzes and Tests - Reviews the Plan
Transfer to Children: Advantages
If clients don't understand advantages and disadvantages of each choice
Info needed to determine the money that Biz Owner needs
Role of the Financial Planner
12. Clarifies objectives - Prioritizes objectives - Facilitates progress by identifying a desired outcome - Focuses energy on most urgent concerns - Allows owner to control and define the Exit Planning Process
Benefits (to Biz Owners) of Setting Goals
Advantages of Using an Experienced Financial Planner
Exit Plan
Financial Planning Factors to Consider
13. Owner can structure the deal ahead of time to suit his or her particular needs and objectives - With proper planning - it is possible to retain control until cashed out of the business - Pre-qualifies the buyer through on-the-job training and observa
Five important pieces of information to be collected from the client
Owners must choose from a limited number of possible successors
ESOPs: Advantages
Sale to Employees: Advantages
14. The purpose of a Financial Needs Analysis is to compare the financial obligations that owners can realistically expect to face in the future with their personal financial resources that are not related to the Company. - Any deficit must be met by af
Owners must choose from a limited number of possible successors
Financial Needs Analysis - Factors to Consider
To whom does the owner want to transfer the business?
Financial Needs Analysis
15. If the business is properly prepared for sale - the owner can get cashed out at the closing - thereby receiving immediate cash. This ensures that owners attain their fundamental objective of financial security and - perhaps - avoid risk as well. - A
Transfer to Children: Disadvantages
ESOPs: Disadvantages
Five important pieces of information to be collected from the client
Third Party Sale: Advantages
16. No cash up front unless the owner has pre-funded - and even then - he or she has probably pre-funded with money that was the owner's anyway - A greater risk may exist because the owner's buyout money typically comes from the future earnings of the bu
ESOPs: Disadvantages
Sale to Employees: Advantages
Sale to Employees: Disadvantages
Owners must choose from a limited number of possible successors
17. Family - Co-Owner - Key employee(s) - Outside party - ESOP
Sale to Employees: Advantages
Third Party Sale: Disadvantages
Role of the Financial Planner
To whom does the owner want to transfer the business?
18. After-tax income needs of the client after departure from the company - Assets that are expected to generate that income stream and the assumptions upon which this analysis is based - Estimated tax and/or after-tax calculations - Wealth management pl
Benefits (to Biz Owners) of Setting Goals
Financial Planning Factors to Consider
Financial Needs Analysis - Factors to Consider
Third Party Sale: Disadvantages
19. Preliminary Financial Needs Analysis - Preliminary Valuation of Company -Future Cash Flow Estimate
Info needed to determine the money that Biz Owner needs
Advantages of Using an Experienced Financial Planner
Owners must choose from a limited number of possible successors
Five important pieces of information to be collected from the client
20. Great potential exists to increase family friction - discord and a feeling of unequal treatment among siblings - Financial security is normally diminished - not enhanced; although with careful planning and implementation - financial security often ca
Transfer to Children: Disadvantages
Advantages of Using an Experienced Financial Planner
Sale to Employees: Disadvantages
Five important pieces of information to be collected from the client
21. Receive Full Value for Ownership Interest - Benefit One or More Employees - Charitable or Civic Giving - Pass Wealth with Minimal Tax Consequences to Family Members - Perpetuate Legacy - Family Harmony
Sale to Employees: Advantages
Transfer to Children: Disadvantages
Additional Owner Objectives
Sale to Employees: Disadvantages
22. Unveils whether owner has made incorrect assumptions - Prevents you from jumping ahead with solutions - Ensures that due care is spent on clarifying and prioritizing objectives.
Establishing Universal Objectives
Third Party Sale: Advantages
If clients don't understand advantages and disadvantages of each choice
Role of the Financial Planner
23. Target Departure Date - A Preliminary Financial Needs Analysis - Desired Successor - A Preliminary Valuation of the Company - A Future Cash Flow Estimate
ESOPs: Advantages
Role of the Financial Planner
Five important pieces of information to be collected from the client
Owners must choose from a limited number of possible successors
24. Allows the client to develop some reasonable numbers and thus expectations related to the future. - This analysis can be for retirement projections - cash flow and expense analysis and to assist in the design of a business Exit Plan - Without a FNA
Benefits of Financial Needs Analysis (FNA)
Five Essential Elements of Successful Exit Plan
Sale to Employees: Advantages
Important Elements of the financial analysis
25. Educate them about the different exit paths by providing White Papers or past issues of The Exit Planning Review - Start the process by securing the preliminary valuation (and five year cash flow estimate) - or a Marketability Assessment by a transac
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
26. If you know what the owner wants to do and you know what the owner has - you can do an _______.
Exit Plan
Establishing Universal Objectives
Five important pieces of information to be collected from the client
Info needed to determine the money that Biz Owner needs
27. After-tax income needs of the client after departure from the company - Assets that are expected to generate that income stream and the assumptions upon which this analysis is based - Estimated tax and/or after-tax calculations - Wealth management
Financial Needs Analysis - Factors to Consider
Role of the Financial Planner
ESOPs: Disadvantages
Sample FNA components