NACVA CVA Exam - Topic 6 Question 41 Discussion

Actual exam question for NACVA's CVA exam

Question #: 41
Topic #: 6

[All CVA Questions]

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

ASome type of formula based on the financial statements such as book value, some combination of such variables

BNegotiation among the parties

CIndependent outside appraisal

DAmbiguity as to the applicable valuation date

Show Suggested Answer

Suggested Answer: D

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

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Titus

4 months ago

Ambiguity in valuation? That can't be a real method!

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Wenona

5 months ago

C is pretty standard too, right?

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Sabra

5 months ago

Wait, D? That sounds a bit off.

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Nana

5 months ago

I think B is the most typical approach.

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Jovita

5 months ago

A is definitely a common method.

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Carlee

5 months ago

I think independent appraisals are often used, so that makes me lean towards D being the exception, but I could be wrong.

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Belen

5 months 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.

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Shayne

5 months 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.

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Meghan

5 months ago

I remember discussing how formulas based on financial statements are common in pricing mechanisms, so I think A is likely correct.

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Erick

5 months 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.

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Laquanda

5 months 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?

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Sunshine

5 months 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.

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Charlie

6 months 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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