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IFPUG Accredited in Business Valuation (ABV) Sample Questions:
1. Supermajority vote requirements and state dissolution statues are the factors that influence:
A) Swing vote
B) Lack of control discount
C) Ultimate rate of return produced by the interest.
D) Blocking power
2. The capital stock of a corporation, its net assets and its share of stock are entirely different
things... the value of one bears no fixed or necessary relation to the value of the other;
because:
A) Share holders are only concerned with dividends
B) Only the corporation itself holds to all its assets and liabilities ... A thirsty shareholder of brewery cannot walk into "his" company and demand that a case of beer be charged to his equity account
C) Putting capital in stocks is somewhat a risky investment
D) A share of common stock does not represent a share in the ownership of the assets of a business.
3. _ is the uncertainty of future
returns resulting
from the sensitivity of the return on the subject investment to movements in the return on the investment market as a whole.
A) Unsystematic risk
B) Equity-risk premium
C) Investment-specific risk
D) Systematic risk
4. When preparing a business valuation for reorganization proceedings under bankruptcy statues, the parties will frequently rely on .
A) Reengineering of valuation procedures
B) Enterprise value
C) Capitalization of anticipated cash flow
D) Ownership of assets
5. The stream of expected returns and the required rate of return on the investment are the steps of:
A) Recapitalization
B) Valuation
C) Discounting Income Method
D) Capitalization
Solutions:
Question # 1 Answer: B | Question # 2 Answer: B,D | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |