FTT Chapter Eleven 2015v1 Review Questions
Fundamentals, Techniques & Theory
PRACTICE CASE WORKSHOP
BUSINESS VALUATIONS: FUNDAMENTALS, TECHNIQUES AND THEORY (FT&T) CHAPTER 11 REVIEW QUESTIONS
© 1995–2015 by National Association of Certified Valuators and Analysts (NACVA). All rights reserved. Used by Institute of Business Appraisers with permission of NACVA for limited purpose of collaborative training.
Chapter Eleven – 13 2015.v1
PRACTICE CASE WORKSHOP
Fundamentals, Techniques & Theory
FT&T CHAPTER REVIEW QUESTIONS
Chapter 11: Practice Case Workshop 1.
In gathering the necessary information to complete Adler-Cottino as an example of a report you can use for later reference: a. b. c. d.
2.
It is necessary to be able to fully describe the history and nature of the business being valued It is not necessary to understand this business or any business, as the company’s management is running the business A personal tour of the business can’t be done, so there is not a way to put anything meaningful in the report Note that the type of organizational structure will not be applicable to any other company you would value
In defining the valuation engagement prior to issuing a valuation report: a. b. c. d.
Ascertain whether the necessary client information and technical resources are available. If not, decline the valuation Define the ownership interest to be valued as this will affect any premiums or discounts to be discussed in the final report You must obtain a client representation letter You must obtain a client engagement letter
14 – Chapter Eleven 2015.v1
© 1995–2015 by National Association of Certified Valuators and Analysts (NACVA). All rights reserved. Used by Institute of Business Appraisers with permission of NACVA for limited purpose of collaborative training.
PRACTICE CASE WORKSHOP
BUSINESS VALUATIONS: FUNDAMENTALS, TECHNIQUES AND THEORY (FT&T) CHAPTER 11 REVIEW QUESTIONS
© 1995–2015 by National Association of Certified Valuators and Analysts (NACVA). All rights reserved. Used by Institute of Business Appraisers with permission of NACVA for limited purpose of collaborative training.
Chapter Eleven – 13 2015.v1
PRACTICE CASE WORKSHOP
Fundamentals, Techniques & Theory
FT&T CHAPTER REVIEW QUESTIONS
Chapter 11: Practice Case Workshop 1.
In gathering the necessary information to complete Adler-Cottino as an example of a report you can use for later reference: a. b. c. d.
2.
It is necessary to be able to fully describe the history and nature of the business being valued It is not necessary to understand this business or any business, as the company’s management is running the business A personal tour of the business can’t be done, so there is not a way to put anything meaningful in the report Note that the type of organizational structure will not be applicable to any other company you would value
In defining the valuation engagement prior to issuing a valuation report: a. b. c. d.
Ascertain whether the necessary client information and technical resources are available. If not, decline the valuation Define the ownership interest to be valued as this will affect any premiums or discounts to be discussed in the final report You must obtain a client representation letter You must obtain a client engagement letter
14 – Chapter Eleven 2015.v1
© 1995–2015 by National Association of Certified Valuators and Analysts (NACVA). All rights reserved. Used by Institute of Business Appraisers with permission of NACVA for limited purpose of collaborative training.
