NACVA CVA Exam (page: 2)
NACVA Certified Valuation Analyst (CVA)
Updated on: 31-Mar-2026

Viewing Page 2 of 33

In most business valuations, the opinion of value will be based at least partly on other, similar transactions, such as:

  1. Prices at which stocks are denominated
  2. Degree of marketability
  3. Prices at which stocks in the same or a related industry are trading in the public market relative to their earnings, assets, dividends or other relative variables
  4. Black-or-white issues

Answer(s): C



In a marital dissolution the parties may be concerned with the change in value that occurred during the marriage. In estate cases, the trustee, the executer, or personal representative will consider adopting the "alternative valuation date"(i.e. six months after the date of death) to determine which is more advantageous. These are the examples of:

  1. Situations identifying valuation date
  2. Situations having more than one valuation dates
  3. Litigated cases
  4. Universally applicable methods to finalize valuation date

Answer(s): B



In ________cases, the valuation date itself is an issue to be resolved by the court. In such situations, the appraiser must be prepared to address the valuation as of several dates, sometimes without knowing which date the court determined to be relevant until after the judgment is rendered. Since the choice of valuation date in such cases is a legal matter.

  1. Litigated cases
  2. Estate tax cases
  3. Enterprise value identification cases
  4. Cooperatives

Answer(s): A



Valuation reports should contain a set of limiting conditions, and one of the typical limiting conditions is as follows:

  1. Legal and estate tax factors
  2. The valuation is valid only for the valuation date or dates specified herein. No other purpose is intended or should be inferred
  3. Litigation over business valuation is commonplace
  4. The purpose of the valuation encompasses the use to which the valuation exercise is expected to be put

Answer(s): B



"The amount at which property would change hands between a willing seller and a willing buyer, when neither is acting under compulsion and when both have reasonable knowledge of the relevant facts". This definition is related to:

  1. Investment value
  2. Fair market value
  3. Litigation value
  4. Standard of value

Answer(s): B



"Market value is the most probable price which a property should bring in a completive and open market under all conditions requisite to fair sale the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus." Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions/s whereby:

  1. Buyer and seller are typically motivated
  2. Both parties are well informed or well advised and acting in what they consider their best interests
  3. A reasonable time is allowed for exposure in the open market
  4. Differences in financing costs and tax status

Answer(s): A,B,C



Virtually, all businesses or interests in businesses may be appraised under some alternatives premises of value.
Which of the following is not out of those premises?

  1. Value as a going concern
  2. Value as an assemblage of assets
  3. Value as an orderly disposition
  4. Value as a sudden liquidation

Answer(s): D



Statutory law
Case law
Administrative rulings
Company documents
Contracts between parties precedent established by prior transactions Legal documents. These are some of the most important sources of guidance as to:

  1. The applicable standard and premises of value for the given situation.
  2. The appraiser's experience and judgment.
  3. The selection of appropriate premise
  4. The value of the same business enterprise

Answer(s): A



Viewing Page 2 of 33



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