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NACVA CVA Exam - Topic 3 Question 58 Discussion

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:
D) The flexibility and safety of being able to ''cash out'' readily at the owner's option
A) the mode of payment as it is the exchange of interests in the marital assets
B) Underlying principles that are much more consistent and broadly accepted
C) Such flexibility

NACVA CVA Exam - Topic 3 Question 58 Discussion

Actual exam question for NACVA's CVA exam
Question #: 58
Topic #: 3
[All CVA Questions]

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:

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Suggested Answer: D

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

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Jenelle
10 months ago
I thought cashing out was always an option, why the discounts?
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Lazaro
10 months ago
B is definitely the right choice here, makes the most sense.
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Alease
11 months ago
Wait, are we sure this applies in all cases? Seems a bit inconsistent.
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Karl
11 months ago
Totally agree, it’s only fair to recognize that difference!
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Salley
11 months ago
Lack of marketability discounts are a real issue in divorce settlements.
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Kelvin
11 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
11 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
11 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
11 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
11 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
11 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
11 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
12 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
1 year 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
1 year 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
1 year 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
1 year 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
1 year ago
I think B is also important because it talks about the underlying principles that are broadly accepted.
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Fabiola
1 year ago
I agree, D really highlights the importance of being able to cash out easily.
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Kaitlyn
1 year 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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Janessa
1 year ago
Option D seems to be the most logical answer here.
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Winfred
1 year ago
D) The flexibility and safety of being able to ''cash out'' readily at the owner's option
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Blossom
1 year ago
A) the mode of payment as it is the exchange of interests in the marital assets
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Fatima
1 year ago
I believe option D makes sense, as having the flexibility to 'cash out' easily can be crucial in divorce settlements.
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Skye
1 year ago
I agree with you, Blossom. It's important to consider the financial implications for both spouses.
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Blossom
1 year ago
I think lack of marketability discounts should be recognized in divorce cases.
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