CBI cheat sheet

Adult learning theory (andragogy) holds that adult learners need to know why a topic matters, learn experientially, and apply knowledge immediately; training design should state objectives and relevance up front.

Bloom's taxonomy orders cognitive objectives from remembering, understanding, applying, analyzing, evaluating, to creating; exam items and course outcomes should match the intended level.

Kirkpatrick's four evaluation levels are reaction, learning, behavior, and results; a course is only fully evaluated when on-the-job behavior change and business results are measured.

Continuing education requirements typically specify a number of credit hours per renewal cycle, with a portion in ethics and a portion in the core subject; credits are usually reported in contact hours where one hour equals 50-60 minutes of instruction.

Learning objectives should be written with observable action verbs (list, calculate, compare) rather than vague verbs (know, understand) so that assessment can measure achievement.

Formative assessment occurs during instruction to guide learning; summative assessment occurs at the end to judge achievement against objectives.

Competency-based education measures demonstrated skill against a defined standard rather than time spent in a classroom; mastery is required before advancing.

Instructional design models such as ADDIE (analyze, design, develop, implement, evaluate) provide a systematic cycle for building and revising curricula.

A conflict of interest exists when a personal, financial, or family interest could improperly influence professional judgment; the standard remedy is disclosure and, where necessary, recusal.

Fiduciary duty requires acting in the client's best interest, placing the client's interest above the professional's own, and avoiding self-dealing.

Informed consent requires that the client receive material facts, understand the risks and alternatives, and voluntarily agree before action is taken.

Confidentiality obligations generally survive the end of the engagement; exceptions typically include client authorization, legal compulsion, and prevention of serious harm.

Ethical decision frameworks commonly ask: Is it legal? Is it fair to all stakeholders? Would I be comfortable if it were public? Does it comply with the professional code?

A professional code typically addresses competence, integrity, objectivity, confidentiality, and professional behavior; violations can lead to discipline independent of legal liability.

Dual relationships occur when a professional holds two roles with the same party (for example, adviser and buyer); they should be avoided or managed through written disclosure.

Plagiarism and misrepresentation of credentials are ethics violations even when no financial harm results, because they compromise trust in the profession.

Professional competence means maintaining current knowledge, recognizing the limits of one's expertise, and referring matters outside that expertise to qualified parties.

Scope of practice defines the services a credential authorizes; performing services outside scope, even competently, is a professionalism violation.

Documentation standards require contemporaneous, accurate, and complete records; records are presumed reliable and may be discoverable in disputes.

Client communication should be timely, clear, and in writing for material decisions; silence or ambiguity is not consent.

Continuing professional development, supervision, and peer review are the standard mechanisms for maintaining and demonstrating competence over time.

Professional boundaries include avoiding gifts or favors that could create obligation, and declining engagements where objectivity cannot be maintained.

Referral arrangements must be disclosed; undisclosed compensation for referrals is a professionalism and ethics breach.

A professional should separate personal opinion from professional advice and should correct errors promptly and transparently.

Business valuation for a brokerage engagement commonly uses seller's discretionary earnings (SDE) for owner-operated businesses: net income plus owner compensation, non-cash expenses, and non-recurring items.

A common pricing heuristic for small businesses is a multiple of SDE, often 2x to 4x for businesses under roughly $1 million in revenue, with the multiple rising for larger, more transferable businesses.

The listing agreement should specify commission, term, exclusivity, and tail period; a tail clause entitles the broker to a fee if a buyer introduced during the term closes after expiration.

Due diligence typically covers financial statements, tax returns, customer concentration, contracts, leases, employment obligations, and intellectual property.

Asset sales and stock sales differ: in an asset sale the buyer generally avoids assuming undisclosed liabilities, while a stock sale transfers the entity and its liabilities.

Confidentiality is essential in brokerage; buyers typically sign a non-disclosure agreement before receiving a confidential information memorandum (CIM).

SBA 7(a) loans are a common acquisition financing source; lenders typically require a down payment, personal guarantee, and business valuation supporting the loan amount.

A broker should not give legal or tax advice; the engagement should direct the parties to attorneys and accountants for those matters.