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NACVA Exam CVA Topic 2 Question 105 Discussion

Actual exam question for NACVA's CVA exam
Question #: 105
Topic #: 2
[All CVA Questions]

Buy-sell agreement may specify that the shares be valued strictly at their fair market value as:

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Suggested Answer: C

by Cristal at Jan 26, 2025, 02:14 AM

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Clay
3 months ago
The exam gods are really testing our understanding of business valuation here. Option B sounds like the 'fair' choice, but option C might be more realistic in the real world.
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Stanton
2 months ago
Yeah, option B sounds good in theory, but option C might be the way to go in real-world scenarios.
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Daren
2 months ago
I agree, option B is ideal but option C might be more common in actual buy-sell agreements.
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Oliva
2 months ago
It's true, option B seems fair but option C could be more realistic in practice.
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Nadine
2 months ago
I think option B makes sense in theory, but option C might be more practical.
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Chaya
3 months ago
As an accountant, I'd say option C is the way to go. A specified percentage discount is a more practical approach than trying to determine a 'fair' value.
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Larue
3 months ago
Haha, I guess the shareholders are trying to have their cake and eat it too with option D. Can't decide on fair market value or a discount? Why not both!
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Ciara
2 months ago
Glenn: Exactly, can't decide on fair market value or a discount, so why not have both?
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Glenn
2 months ago
User 2: I agree, it's like having their cake and eating it too.
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Stanford
2 months ago
User 1: Yeah, option D seems like they want the best of both worlds.
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Isaac
4 months ago
I'm torn between B and D. The absence of discounts for lack of control or marketability makes sense, but a specified percentage discount could also be reasonable.
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Remedios
2 months ago
That's true. D does cover all possibilities. It might be the safer choice.
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Barney
3 months ago
I see your point, but D could also work. It includes both options, so it covers all bases.
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Flo
3 months ago
I think B makes more sense. No discounts for lack of control or marketability.
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Lilli
4 months ago
Option B seems like the most logical choice, as it specifies the shares should be valued at a proportionate share of the enterprise value without any discounts.
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Harris
3 months ago
I think it ultimately depends on the specific circumstances of the agreement.
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Tawna
3 months ago
True, having both options B and C covered could provide more flexibility.
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Marilynn
3 months ago
But option D also includes option B, so it might be a better choice.
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Wayne
4 months ago
I agree, option B does seem like the most logical choice.
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Marnie
4 months ago
I'm not sure about that, I think it could also be C) At a specified percentage discount from a proportionate share of total enterprise value.
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Onita
5 months ago
I agree with Roosevelt, because it makes sense to value the shares at a proportionate share of the enterprise value with no discounts.
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Roosevelt
5 months ago
I think the answer is D) Both B & C.
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