Financial ABV Exam
Accredited in Business Valuation (ABV) (Page 25 )

Updated On: 12-Jan-2026

Beta is a factor used to measure:

  1. Systematic risk
  2. Unsystematic risk
  3. Impact of size effect on risk
  4. Equity risk premium

Answer(s): A



FLPs (Family limited partnership) may help an owner maintain:

  1. Control of assets
  2. May protects assts from creditors
  3. May avoid fractionalization of title
  4. All of these

Answer(s): D



The instances and factors contributing to in adequate valuations for tax purposes by both taxpayer and IRS experts could easily fill an entire book of this size. Some of the most common inadequacies are the following EXCEPT:

  1. The valuation is out of date
  2. Lack of site visits and/or management interviews
  3. Inadequate selection and/or analysis/explanation of selected (e.g. pricing multiples, discount/capitalization rates, discounts/premiums)
  4. Unsuccessful Daubert challenges

Answer(s): D



Buy-sell agreement in which issuing corporation or partnership buys the interest from the transferring party or from the deceased party is called:

  1. Repurchase agreement
  2. Entity purchase agreement
  3. Redemption agreement
  4. Cross purchase agreement

Answer(s): C



"Tag along rights" are Buy-Sell agreements which:

  1. Often call for the sales of interest on the same terms if the controlling owner sells
  2. Have become more common these days
  3. Allow the issuer first priority to buy the interest and other stockholders or partners the second-place option to buy
  4. Both A & B

Answer(s): D



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