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NACVA CVA Exam - Topic 6 Question 41 Discussion

Most of the mechanisms for setting prices in buy-sell agreements generally fall into one or a combination of following categories EXCEPT:
D) Ambiguity as to the applicable valuation date
A) Some type of formula based on the financial statements such as book value, some combination of such variables
B) Negotiation among the parties
C) Independent outside appraisal

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:

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Suggested Answer: D

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

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Titus
10 months ago
Ambiguity in valuation? That can't be a real method!
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Wenona
11 months ago
C is pretty standard too, right?
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Sabra
11 months ago
Wait, D? That sounds a bit off.
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Nana
11 months ago
I think B is the most typical approach.
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Jovita
11 months ago
A is definitely a common method.
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Carlee
11 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
11 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
11 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
11 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
11 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
11 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
12 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
12 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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