TMA Operational Turnaround 2

Question 1

What is a '100-day plan' in the context of a turnaround engagement?

Accepted Answer

A structured short-term action plan to achieve critical stabilization milestones

Answer

A long-term five-year strategic plan

Answer

A plan filed with the bankruptcy court

Answer

A plan to sell the company within 100 days

Question 2

Why is supplier relationship management critical during an operational turnaround?

Accepted Answer

Maintaining supplier trust preserves the supply chain needed to continue operations

Answer

Suppliers can provide equity financing

Answer

Suppliers vote on restructuring plans

Answer

It satisfies SEC disclosure requirements

Question 3

What is a 'contribution margin' analysis used for in operational turnaround?

Accepted Answer

Identifying which products or customers generate positive cash flow after variable costs

Answer

Measuring total company profit

Answer

Calculating tax obligations

Answer

Determining enterprise value

Question 4

In a turnaround, what does 'customer concentration risk' refer to?

Accepted Answer

Excessive revenue dependence on a small number of customers

Answer

Having too many customers to manage

Answer

A marketing strategy to focus on premium clients

Answer

Geographic clustering of the customer base

Question 5

Which of the following best describes 'zero-based budgeting' in a turnaround context?

Accepted Answer

Building the budget from zero, justifying every expense from scratch

Answer

Budgeting based on prior year plus inflation

Answer

Eliminating the budgeting process entirely

Answer

Setting the budget to zero and freezing all spend

Question 6

What is the role of a Chief Restructuring Officer (CRO) in an operational turnaround?

Accepted Answer

To provide independent leadership and execute the turnaround plan with authority

Answer

To represent creditors in court

Answer

To replace the board of directors

Answer

To manage only the financial restructuring