NACVA Certified Valuation Analyst Set 1

Virtually, all businesses or interests in businesses may be appraised under some alternatives premises of value. Which of the following is not out of those premises?

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 valuation opinion repot will typically include the following sections EXCEPT:

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:

"When earnings have once been "realized", so that they can be expressed with some approach to accuracy in the company's accounts, they are already water under the mill and have no direct bearing on what the property in question is now worth. Value, under any plausible theory of capitalized earning power is necessarily forward looking. It is an expression of the advantage that an owner of the property may expect to secure from the ownership in the future. The past earnings are therefore beside the point, save as a possible index of future earnings". This statement correctly expresses:

One way or the other, the financial benefits of ownership of an interest in a business enterprise must come from the following sources EXCEPT:

In many instances, value considerations are tempered by internal variables, often variables relative to specific shareholding as opposed to the company as a whole.
Which of the following is NOT out of such variables?

1. Dividends or partnership withdrawals (i.e. current economic income). 2. Proceeds from the ultimate sale of the ownership interest or liquidation of the subject business (i.e., including any long-term appreciation in the value of the security interest itself). These two are the categories of:

Accepted business valuation approaches and methods are all of the following EXCEPT:

There's a tendency for the market for the businesses to change more rapidly than the market for real estate. After all, a business can be thought of as a collection of _____________ each with its own price volatility and risks of ownership.