TMA Operational Turnaround

Question 1

What is the first priority in an operational turnaround engagement?

Accepted Answer

Stabilizing cash flow and stopping the bleeding

Answer

Launching new products

Answer

Replacing all senior management

Answer

Refinancing all existing debt

Question 2

Which of the following is a common quick-win operational cost reduction in a turnaround?

Accepted Answer

Reducing discretionary spending and eliminating non-core activities

Answer

Building a new headquarters

Answer

Expanding the sales force immediately

Answer

Increasing R&D investment

Question 3

What does SKU rationalization mean in an operational turnaround?

Accepted Answer

Reducing the number of products offered to focus on the most profitable ones

Answer

Renaming product lines

Answer

Adding new product variants to boost revenue

Answer

Outsourcing manufacturing overseas

Question 4

What is a key performance indicator (KPI) dashboard used for in a turnaround?

Accepted Answer

Providing management real-time visibility into critical operational and financial metrics

Answer

Replacing financial audits

Answer

Filing reports with the SEC

Answer

Communicating with creditors only

Question 5

In turnaround management, what does 'rightsizing' the workforce mean?

Accepted Answer

Reducing headcount to align staffing levels with current business needs

Answer

Hiring aggressively to support growth

Answer

Outsourcing all functions

Answer

Promoting internal candidates to fill gaps

Question 6

What is the purpose of a 'working capital optimization' initiative in a turnaround?

Accepted Answer

Free up cash trapped in receivables, inventory, and payables

Answer

Increase capital expenditure

Answer

Issue new equity to fund operations

Answer

Delay supplier payments indefinitely