Financial ABV Exam
Accredited in Business Valuation (ABV) (Page 11 )

Updated On: 12-Jan-2026

Discounts for contingent liabilities can cover a wide range of spectrum, such as:

  1. Environmental liabilities
  2. Pending lawsuits
  3. Liability for controlling ownership interest
  4. Both A and B

Answer(s): D



may apply to publicly traded stock where the size of the block is large enough relative to normal trading volume that it could not be sold in a short time without depressing the market price.

  1. Discounts for lack of control
  2. Blockage discounts
  3. Discounts for lack of marketability
  4. Contingent liability discounts

Answer(s): B



There is no set of number guideline companies to use. However, the more data there are about each company and the greater the similarity between the subject company and the companies chosen as guideline companies, the guideline companies will pass muster.

  1. Greater
  2. fewer
  3. Average
  4. Depends on selection procedures and industry type

Answer(s): A



The court's acceptance, rejection, or relative weight accorded to various valuation approaches and methods generally revolves around some factors. Which of the following are NOT out of those factors?

  1. The type of company
  2. The quality of available evidence relevant to the respective methods
  3. The prospects for liquidation or continued operations
  4. The subject company's industry norms

Answer(s): D



Some companies' articles of incorporation have provisions that if majority shares are sold in a change of control transactions, the majority shareholders must be offered the same price. This relates to:

  1. Blocking power
  2. Coattail protection
  3. Supermajority vote
  4. State dissolution statutes

Answer(s): B



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