Question 1

The analyst used __________ to quantify the value of intangible assets. The analyst estimated the current cost required for the company to recreate its current level of customer awareness, brand recognition and consumer loyalty.

Options :

A : Asset accumulation method

B : Income approach

C : Recreation cost method

D : Valuing intangibles method

Answer: C

Question 2

It is highly unlikely, in formula approaches for setting the price in a buy-sell agreement, that the price established by a formula at the time of signing will be even close to the value of the interest at the time of triggering event, which could be many years later. For these reason analysts:

Options :

A : Highly encourage the use of formulas in high-sell agreements

B : Highly discourage the use of formulas in high-sell agreements

C : Allow flexibility in approach

D : Do not allow flexibility in approach

Answer: B

Question 3

The analyst should be curious about the proprietary products and services, especially:

Options :

A : Benefits attributable to brand name, trademarks copyrights or patents

B : Favorable supplier contracts

C : The unique characteristics that generate a comparative advantage over their competition

D : Intangible assets

Answer: C

Question 4

The sales comparison approach is based on the economic principles of:

Options :

A : Efficient markets

B : Special financing and other terms regarding each sales transactions

C : Age of each property

D : Supply and demand

Answer: A,D

Question 5

Several factors influence __________________, particularly:

1. The proximity of the valuation date to the fiscal year-end

2. The quality of the interim statements

3. The importance of seasonality to the subject company

4. The extent to which information in interim statements is likely to affect the affect the conclusion

Options :

A : Usefulness of interim statements

B : Financial schedules

C : Federal tax returns

D : Audited statements

Answer: A

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