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IFPUG Accredited in Business Valuation (ABV) Sample Questions:
1. The primary ownership interest characteristics that need to be addressed in almost every business valuation are the following EXCEPT:
A) Fair market value
B) Control or minority valuation basis (not necessarily a black-and-white issue _there may be elements of control without absolute control
C) Fair market value on a nonmarketable, non-controlling ownership interest basis.
D) Degree of marketability
2. Discounts for contingent liabilities can cover a wide range of spectrum, such as:
A) Pending lawsuits
B) Liability for controlling ownership interest
C) Both Aand B
D) Environmental liabilities
3. in context of Delware block method means value based on expected earnings and/or dividends. It is akin to value based on the income approach in the three basic approaches to value. It may be arrives at by discounted cash flow (DCF), capitalization of earnings, or capitalization of dividends.
A) Investment Value
B) Interest on invested capital
C) Market value
D) Ownership interest
4. The income capitalization approach is based on the economic principles of:
A) Anticipation
B) Amortization
C) All of the above
D) Capitalization
5. There is a general consensus among appraisers that there is little or no difference in controlling interest market values between S corporations and C corporations under most circumstances, and that any difference depends on:
A) Finding a dealer that there may be differences in value at the shareholder level for non- controlling interests.
B) Finding a broker that there may be differences in value at the shareholder level for non- controlling interests.
C) Finding a seller that there may be differences in value at the shareholder level for non-controlling interests.
D) Finding a buyer that there may be differences in value at the shareholder level for non-controlling interests.
Solutions:
| Question # 1 Answer: A,C | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: D |






