TMA Operational Turnaround 3

Question 1

What does 'asset monetization' mean in a turnaround?

Accepted Answer

Selling or leveraging non-core assets to generate immediate cash

Answer

Depreciating assets faster for tax purposes

Answer

Transferring assets to creditors as payment

Answer

Converting physical assets to digital form

Question 2

What is a 'lender steering committee' in a restructuring process?

Accepted Answer

A group of major creditors who coordinate negotiations with the distressed company

Answer

A government body overseeing bank lending

Answer

The company's board finance committee

Answer

A committee that approves DIP financing terms

Question 3

Why is IT systems stability important during an operational turnaround?

Accepted Answer

Operational disruptions from IT failures can accelerate financial losses

Answer

Regulators require IT audits during restructuring

Answer

IT assets are always sold first in a turnaround

Answer

IT systems generate the most cash in a crisis

Question 4

What is 'operational benchmarking' used for in a turnaround assessment?

Accepted Answer

Comparing the company's operational metrics against industry peers to identify improvement gaps

Answer

Setting executive compensation targets

Answer

Measuring the company's market share

Answer

Filing compliance reports with regulators

Question 5

What does 'revenue enhancement' mean as a turnaround lever?

Accepted Answer

Taking actions to grow or protect revenue alongside cost reduction efforts

Answer

Cutting prices to boost volume

Answer

Replacing the sales team entirely

Answer

Focusing only on new market entry

Question 6

In a turnaround, what is the purpose of a 'critical vendor' designation?

Accepted Answer

Allowing the company to pay certain pre-petition vendor claims to maintain essential supply

Answer

Giving vendors equity stakes in the company

Answer

A legal requirement for all vendors during bankruptcy

Answer

Designating vendors who receive payment last