CTP Cheat Sheet 2026

The 30 highest-yield CTP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the purpose of strategic risk management? → Addressing potential risks that may prevent achieving strategic objectives
2. How does benchmarking help in cost reduction? → By identifying gaps in performance and cost
3. Which U.S. government body oversees the appointment of trustees and examiners in bankruptcy cases? → The U.S. Trustee Program (Department of Justice)
4. What is a cramdown in bankruptcy restructuring? → Court approval of a reorganization plan over the objection of dissenting creditor classes
5. DIP financing stands for: → Debtor-In-Possession financing
6. The 'absolute priority rule' in Chapter 11 requires that: → No junior class can receive value unless all senior classes are paid in full first
7. What is debtor-in-possession (DIP) financing? → New funding provided to a company during bankruptcy that has priority over existing debt
8. Which of the following is a common method for reducing operational costs? → Outsourcing non-core activities
9. What is the primary role of a Chief Restructuring Officer (CRO)? → To lead the turnaround effort and manage the restructuring process
10. What is the primary purpose of a 13-week cash flow forecast in a turnaround situation? → To monitor near-term liquidity and identify cash shortfalls
11. What is the role of a turnaround professional in the restructuring process? → To advise on financial restructuring and guide the company through changes
12. Under the Business Judgment Rule, directors are protected from personal liability when they: → Make informed, good-faith decisions in the company's best interest
13. A Chief Restructuring Officer (CRO) is typically appointed to: → Provide independent restructuring expertise and credibility with creditors
14. A 'stalking horse' bidder in a Section 363 sale: → Provides the initial bid that sets a floor for competitive auction bidding
15. What does a 'moratorium' on debt payments allow a distressed company to do? → Temporarily suspend debt service payments while restructuring out of court
16. What is enterprise value in the context of company valuation? → The total value of a company including debt and equity minus cash
17. Which term describes a court-approved arrangement permitting a debtor to use a secured lender's collateral cash during Chapter 11 proceedings? → Cash collateral order
18. A 'carve-out' in a DIP financing agreement refers to: → A portion of proceeds reserved for estate professional fees and priority claims
19. What is the primary purpose of due diligence in turnaround situations? → To thoroughly assess the company's financial condition, operations, and viability
20. What is the first priority for interim management in a crisis? → Stabilizing cash flow and ensuring the business can continue operating
21. What is the primary purpose of Chapter 11 bankruptcy? → To allow a business to reorganize while continuing operations
22. Which tool is most commonly used in turnaround situations to project short-term cash needs and identify liquidity gaps? → 13-week cash flow forecast
23. What is the purpose of a vendor rationalization during restructuring? → To reduce the number of suppliers to negotiate better terms and reduce complexity
24. What does "system integration" mean in a technology context? → Connecting different technology systems to work together and share data seamlessly
25. Which metric best signals that a company's liquidity is critically impaired? → Current ratio falling below 1.0
26. What is the absolute priority rule in bankruptcy? → Senior creditors must be paid in full before junior creditors receive any distribution
27. What is a SWOT analysis used for? → Identifying internal and external factors for strategy development
28. What is a key element of successful change management? → Open, transparent, and consistent communication
29. What is a 'going concern' sale in the context of distressed M&A? → A sale of a business as an operating entity, preserving its operations and workforce
30. Which of the following best describes a 'going concern' qualification from an auditor? → The auditor doubts the company's ability to continue operating for the next 12 months