CBB Practice Test

The CBB (Certified Business Brokers) designation is issued by the California Association of Business Brokers. Candidates complete CABB education courses and an application that a committee reviews. This page gives you free practice sets on valuation, financing, ethics, negotiation, due diligence and compliance, plus worked explanations and a study plan. Our questions are written with AI tools and are not real exam questions.

CBB Exam at a Glance

What the CBB is and how it works

According to California Association of Business Brokers, “This course is typically offered virtually 2 times a year so please plan accordingly based on your expiration date.”^[5]

The CBB designation comes from the California Association of Business Brokers (CABB). It is built around education courses and a committee-reviewed application, so the official CABB pages are the place to confirm what applies to you.

Published course details include CABB 101, a 4-day, 12-hour course, and CABB 201. Each costs $249 for members and $349 for non-members. CABB 250 is a 7-hour course for California business brokers at all experience levels. CABB 501 is offered virtually, typically 2 times a year, so plan around your expiration date.

The application fee is $50, paid after the committee approves the application. Approval can take up to 30 days.

If you fail an education course, you can attend a future course at no additional fee. CABB members can also retake CABB 101 for $25 for course materials.

The CBB designation requires recertification every 4 years.

The verified facts we have do not include a passing score, a question count or a scoring method, and requirements may change. Check cabb.org for current eligibility, course dates and fees before you register.

Worked examples: how to reason through CBB questions

These are practice questions written for this site, not questions from the real exam. Each explanation shows why the right answer is right and why the others are wrong.

Example 1

Question: When using a market-based valuation, what is typically compared?

1. Product pricing models
2. Similar business sales
3. Industry regulations
4. Customer satisfaction surveys

Answer: B. Similar business sales

Explanation:

The correct answer is similar business sales. A market-based valuation estimates what a business is worth by looking at what comparable businesses actually sold for, then adjusting for differences in size, earnings and terms.

Product pricing models describe how a company sets prices for what it sells. That affects revenue, but it is not a comparison of whole-business transactions. Industry regulations shape how a business operates and may affect risk, but they are not a pricing benchmark. Customer satisfaction surveys measure service quality and can support a story about the business, but they do not produce a market value on their own.

Rule to remember: the market approach compares completed sales of similar businesses, the income approach looks at future earnings, and the asset approach looks at what the business owns.

Example 2

Question: What is an SBA 7(a) loan most commonly used for in business acquisitions?

1. Financing the purchase of commercial real estate only
2. Funding the purchase of existing businesses, including goodwill and working capital
3. Providing operating capital for start-up businesses
4. Refinancing a business owner's personal mortgage

Answer: B. Funding the purchase of existing businesses, including goodwill and working capital

Explanation:

The correct answer is funding the purchase of existing businesses, including goodwill and working capital. An SBA 7(a) loan is a flexible acquisition loan, which is why buyers often use it when a large part of the price is intangible value rather than hard assets.

Financing commercial real estate only is too narrow. Real estate can be part of a deal, but the question asks what the loan is most commonly used for, and that is the business purchase itself. Operating capital for start-ups misses the acquisition focus, since this question is about buying an existing business. Refinancing a personal mortgage is a personal-finance use and does not fit business acquisition lending.

Rule to remember: when a buyer needs to finance goodwill, working capital and closing costs along with the purchase price, think of 7(a) acquisition financing.

Example 3

Question: What is a key principle in maintaining ethical client relations as a business broker?

1. Aggressively closing the sale
2. Promising unrealistic returns
3. Using vague language
4. Being honest and transparent with clients

Answer: D. Being honest and transparent with clients

Explanation:

The correct answer is being honest and transparent with clients. A broker acts for people making a major financial decision, and trust depends on clients getting accurate information, including unwelcome news about price or risk.

Aggressively closing the sale puts the broker's interest in finishing the deal ahead of the client's interest. Promising unrealistic returns is misleading and can create legal exposure as well as ethical problems. Using vague language lets a client leave with a wrong understanding of fees, terms or risks, which is a quiet form of dishonesty.

Rule to remember: when a question asks about ethical practice, pick the option that gives clients accurate, clear information and puts their informed decision first.

How to use these practice tests

Start with the official CABB course pages so you know which courses and application steps apply to you. Then use the practice sets to find where you are weak.

1. Take a set cold, without notes. Record which questions you miss, not only your overall result.
2. For each miss, read the explanation, then write the rule in your own words. For example, note which valuation approach compares sales and which looks at earnings.
3. Return to the official course material for each weak area, then retake that set a few days later.
4. Alternate between technical areas such as valuation and financing and judgment areas such as ethics, confidentiality and compliance. The judgment areas reward careful reading of what the client is owed.
5. Before test day or your course session, do mixed review across all sets and rework only the questions you still miss.

Remember that our questions are original practice items, not copies of real exam content. Use them to check understanding, and rely on CABB for current requirements.

Sources & last verified

1. California Association of Business Brokers — time limit, exam fee, retake fee (official source). “This 4-day, 12-hour course” Verified Oct 25, 2026.
2. California Association of Business Brokers — time limit (official source). “This 7-hour course is designed for California business brokers at all experience levels.” Verified Oct 25, 2026.
3. California Association of Business Brokers — exam fee, score release (official source). “Pay the $50 Application Fee (after the application is approved by the committee).” Verified Oct 25, 2026.
4. California Association of Business Brokers — retake policy (official source). “Individuals who fail an education course are able to attend a future course at no additional fee.” Verified Oct 25, 2026.
5. California Association of Business Brokers — validity, delivery (official source). “Recertification of the CBB designation is required every 4 years.” Verified Oct 25, 2026.
6. California Association of Business Brokers — exam fee (official source). “$249 Members $349 Non-Members” Verified Oct 25, 2026.

How we verify: editorial & fact-checking policy. Report an error: contact us.