NACVA CVA Exam - Topic 3 Question 58 Discussion

Actual exam question for NACVA's CVA exam

Question #: 58
Topic #: 3

Bishop and Schroeder make the point that lack of marketability discounts should be recognized, just as they are in Tax Court, because one spouse usually gets liquid assets while the other spouse lacks:

Athe mode of payment as it is the exchange of interests in the marital assets

BUnderlying principles that are much more consistent and broadly accepted

CSuch flexibility

DThe flexibility and safety of being able to ''cash out'' readily at the owner's option

Show Suggested Answer

Suggested Answer: D

by Samira at Oct 11, 2022, 05:28 AM

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Jenelle

6 months ago

I thought cashing out was always an option, why the discounts?

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Lazaro

6 months ago

B is definitely the right choice here, makes the most sense.

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Alease

6 months ago

Wait, are we sure this applies in all cases? Seems a bit inconsistent.

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Karl

6 months ago

Totally agree, it’s only fair to recognize that difference!

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Salley

6 months ago

Lack of marketability discounts are a real issue in divorce settlements.

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Kelvin

7 months ago

I think the key point is about the safety of cashing out assets, but I’m not entirely confident if that’s what Bishop and Schroeder emphasized.

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Francisca

7 months ago

I feel like the answer might be about the underlying principles being broadly accepted, but I could be mixing it up with another topic we covered.

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Annmarie

7 months ago

This question reminds me of a practice case we did where one spouse got the house and the other got cash. I think it relates to the flexibility of cashing out, but I can't recall the exact wording.

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Herman

7 months ago

I remember discussing how lack of marketability discounts can really impact asset division in divorce cases, but I'm not sure which option fits best here.

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Tresa

7 months ago

The question is asking for the correct format, so I'll need to analyze each option closely to determine the right one.

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Lili

7 months ago

Based on the information provided, I think the answer is switch. The question states the network needs to support only wired connections, and switch is the Meraki network type for that scenario.

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Cordelia

7 months ago

I vaguely recall something about "data mining" in the context of security, but that seems less related to incident response, right?

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Darci

7 months ago

Option A seems straightforward - revenue and corresponding expenses in the same period. That sounds exactly like what the matching principle requires.

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Louann

11 months ago

Marketability discounts? More like 'how to make the most out of a bad situation' discounts. But yeah, D is the way to go.

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Henriette

11 months ago

Ha! Looks like someone's trying to trick us with those options. D is the only one that really makes sense in the context of the question.

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Maile

12 months ago

I was torn between B and D, but I think D captures the essence of the issue more accurately. The flexibility and safety of being able to cash out is a crucial factor.

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Mitzie

10 months ago

Both B and D make valid points, but I lean towards D for its emphasis on flexibility and safety.

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Alton

11 months ago

I think B is also important because it talks about the underlying principles that are broadly accepted.

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Fabiola

11 months ago

I agree, D really highlights the importance of being able to cash out easily.

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Kaitlyn

12 months ago

Option D seems to be the most logical answer here. The lack of flexibility and safety to readily cash out the assets is a key reason why marketability discounts should be recognized.

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