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NACVA CVA Exam - Topic 6 Question 41 Discussion

Posted by Bok on May 09, 2022 at 09:28 AM

Most of the mechanisms for setting prices in buy-sell agreements generally fall into one or a combination of following categories EXCEPT:

Suggested Answer: D

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13 comments · newest first
TI
Titus 12 months ago
Ambiguity in valuation? That can't be a real method!
WE
Wenona 1 year ago
C is pretty standard too, right?
SA
Sabra 1 year ago
Wait, D? That sounds a bit off.
NA
Nana 1 year ago
I think B is the most typical approach.
JO
Jovita 1 year ago
A is definitely a common method.
CA
Carlee 1 year ago
I think independent appraisals are often used, so that makes me lean towards D being the exception, but I could be wrong.
BE
Belen 1 year ago
I practiced a similar question where ambiguity in valuation dates was mentioned, and it seemed like a tricky aspect, but I’m not confident if it fits here.
SH
Shayne 1 year ago
I’m not entirely sure, but I feel like negotiation is a standard practice in buy-sell agreements, so maybe B isn’t the answer.
ME
Meghan 1 year ago
I remember discussing how formulas based on financial statements are common in pricing mechanisms, so I think A is likely correct.
ER
Erick 1 year ago
This is a tricky one. I'll need to weigh the different cost factors and figure out which one is the most appropriate to use for this situation.
LA
Laquanda 1 year ago
I'm not completely sure, but I remember something about database names having to be unique within the instance, so maybe B isn't right?
SU
Sunshine 1 year ago
I feel pretty good about this one. The Bank Account is most likely owned at the Ledger level, as that's where the financial information is consolidated.
CH
Charlie 1 year ago
I'm not entirely sure, but I feel like onOff Widget also sounds right because it describes the on/off state directly.
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