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IFPUG Accredited in Business Valuation (ABV) Sample Questions:
1. Which approach is based on the
estimation of the
economic benefits that the non- controlling ownership interest holder expects to realize over the expected holding period of the subject investment, discounted at an appropriate rate of return?
A) discount approach
B) market-derived data approach
C) direct comparison approach
D) bottom-up approach
2. The extent to which the valuation multiples are tightly clustered or widely dispersed tends to indicate the extent to which the market focuses on that particular valuation multiple in pricing companies in the particular industry is known as:
A) None of the above
B) Apparent Market Reliance
C) Market Acquisition Model
D) Liquidity Ratio Analysis
3. Which of the following is the primary disadvantage of the asset accumulation method?
A) If taken to an extreme, it can be very expensive and time consuming
B) It may necessitate the involvement o appraisal specialists in several asset valuation disciplines
C) The value of all assets, properties, or business interests depends on their economic income-generating capacity
D) The valuation requires the valuation of all the company assets
4. The analyst should try to gain an understanding of how the company perceives the industry and the particular aspect within which it operates. Which one of the following is NOT out of such aspects?
A) What are the nature and rate of technological changes affecting the industry?
B) What is the progress and prognosis for new products or services, locations, channels of distribution, etc?
C) What special industry factors have a bearing on this particular company?
D) How does it try to do the best job of fitting in its niche?
5. All of the various tangible personal property valuation method and procedures can be grouped into the following approaches EXCEPT:
A) The work-in-process inventory of a professional services firm
B) Final valuation reconciliation
C) The merchandise inventory
of a manufacturer/processor or of a wholesale/retail company
D) Financial asset account categories
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: B,D |



