NACVA CVA Exam - Topic 2 Question 73 Discussion

Actual exam question for NACVA's CVA exam

Question #: 73
Topic #: 2

Which of the following agreements often restrict the marketability of the subject interests and they can, correspondingly, affect the value of other classes of equity as well?

ABuy-sell agreements

BRepurchase agreements

CEmployment agreements

DNon-compete agreements

Show Suggested Answer

Suggested Answer: B

by Jerry at Sep 02, 2023, 01:44 AM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Terrilyn

7 months ago

Wait, are we sure about the impact of these agreements? Seems a bit off.

upvoted 0 times

...

Sage

7 months ago

Totally agree, buy-sell agreements are a big deal!

upvoted 0 times

...

Marilynn

7 months ago

Employment agreements? Not so sure they affect value much.

upvoted 0 times

...

Linwood

7 months ago

I think non-compete agreements are the real issue here.

upvoted 0 times

...

Sylvia

8 months ago

Buy-sell agreements can definitely limit marketability.

upvoted 0 times

...

Laurena

8 months ago

Employment agreements seem less likely to affect marketability directly, but I could be wrong. I need to think this through more.

upvoted 0 times

...

Dortha

8 months ago

I practiced a question similar to this, and I feel like non-compete agreements could restrict marketability too, but I'm leaning towards buy-sell agreements.

upvoted 0 times

...

Alyssa

8 months ago

I'm not entirely sure, but I remember something about repurchase agreements affecting liquidity. Could that be relevant here?

upvoted 0 times

...

Rory

8 months ago

I think buy-sell agreements might be the right answer since they often limit who can buy or sell interests in a business.

upvoted 0 times

...

Gregoria

8 months ago

Based on my understanding, the answer is buy-sell agreements. They restrict the ability to transfer shares, which affects the overall value.

upvoted 0 times

...

Wei

8 months ago

I'm a bit confused by the wording of the question, I'll need to re-read it a few times to make sure I understand.

upvoted 0 times

...

Hubert

8 months ago

Buy-sell agreements make the most sense to me, they can definitely impact the value of other equity classes.

upvoted 0 times

...

Gail

8 months ago

Hmm, I'm not sure about this one. I'll have to think it through carefully.

upvoted 0 times

...

Shawnee

8 months ago

This question seems straightforward, I think the answer is buy-sell agreements.

upvoted 0 times

...

Fletcher

8 months ago

Okay, let's break this down step-by-step. I'll need to calculate the increased cost in Scenario 2 for Company C and match that to the answer choices.

upvoted 0 times

...

Sherita

8 months ago

Ah, I remember learning about this in class. Arista switches use a combination of merchant silicon and custom ASICs, so I'll select option C.

upvoted 0 times

...

Heike

9 months ago

I think the external factors in a SWOT analysis are usually the opportunities and threats, but I'm not completely sure.

upvoted 0 times

...

Alease

1 year ago

Forget the exam, let's all just start our own company and ignore these pesky agreements altogether!

upvoted 0 times

...

Clare

1 year ago

Buy-sell agreements for the win! It's like a corporate version of a prenup - you know things are getting serious.

upvoted 0 times

Bong

11 months ago

True, repurchase agreements can also have a significant impact on the marketability of subject interests.

upvoted 0 times

...

Christene

12 months ago

B) Repurchase agreements

upvoted 0 times

...

Marya

12 months ago

Definitely! Buy-sell agreements are crucial for protecting the interests of all parties involved.

upvoted 0 times

...

Rosio

1 year ago

A) Buy-sell agreements

upvoted 0 times

...

Veronique

1 year ago

Employment agreements? Really? I thought we were playing 'Spot the Obvious' here, not 'Guess the Obscure'.

upvoted 0 times

...

Onita

1 year ago

Repurchase agreements? Seriously? That's like asking a kindergartener to solve calculus.

upvoted 0 times

Carma

11 months ago

I agree, non-compete agreements can also have a big impact.

upvoted 0 times

...

Kerry

11 months ago

Buy-sell agreements are more straightforward.

upvoted 0 times

...

Shalon

11 months ago

Yeah, repurchase agreements can be complex.

upvoted 0 times

...

Shoshana

11 months ago

D) Non-compete agreements

upvoted 0 times

...

Juliana

11 months ago

C) Employment agreements

upvoted 0 times

...

Olen

12 months ago

B) Repurchase agreements

upvoted 0 times

...

Marcelle

12 months ago

A) Buy-sell agreements

upvoted 0 times

...

Louann

12 months ago

Non-compete agreements are also important in restricting marketability.

upvoted 0 times

...

Johnetta

12 months ago

Yeah, repurchase agreements can be complex.

upvoted 0 times

...

Aretha

1 year ago

D) Non-compete agreements

upvoted 0 times

...

Magda

1 year ago

C) Employment agreements

upvoted 0 times

...

Dolores

1 year ago

B) Repurchase agreements

upvoted 0 times

...

Shad

1 year ago

A) Buy-sell agreements

upvoted 0 times

...

Lai

1 year ago

Non-compete agreements? Come on, that's way too obvious. Where's the challenge in that?

upvoted 0 times

Anika

1 year ago

D) Non-compete agreements

upvoted 0 times

...

Jody

1 year ago

C) Employment agreements

upvoted 0 times

...

Marvel

1 year ago

B) Repurchase agreements

upvoted 0 times

...

Malika

1 year ago

A) Buy-sell agreements

upvoted 0 times

...

Mauricio

1 year ago

B) Repurchase agreements

upvoted 0 times

...

Leoma

1 year ago

A) Buy-sell agreements

upvoted 0 times

...

Dona

1 year ago

Buy-sell agreements are definitely the correct answer here. They can really put a damper on the free market!

upvoted 0 times

...

Vincent

1 year ago

I'm not sure, but I think it could also be A) Buy-sell agreements.

upvoted 0 times

...

Carin

1 year ago

I agree with Kattie, non-compete agreements can definitely restrict marketability.

upvoted 0 times

...

Kattie

1 year ago

I think the answer is D) Non-compete agreements.

upvoted 0 times

...