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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
16 days 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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Chaya
19 days 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
23 days 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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Isaac
28 days 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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Flo
20 days ago
I think B makes more sense. No discounts for lack of control or marketability.
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Lilli
2 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
1 days ago
I think it ultimately depends on the specific circumstances of the agreement.
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Tawna
5 days ago
True, having both options B and C covered could provide more flexibility.
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Marilynn
5 days ago
But option D also includes option B, so it might be a better choice.
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Wayne
1 months ago
I agree, option B does seem like the most logical choice.
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Marnie
2 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
2 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
2 months ago
I think the answer is D) Both B & C.
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