TMA Cheat Sheet 2026

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

1. In financial restructuring, what does 'enterprise value' represent? → The total value of the business to all stakeholders, including debt and equity
2. What does DIP financing stand for in restructuring? → Debtor-In-Possession financing
3. What does 'par' mean in the context of distressed debt trading? → The face value of the debt instrument at 100 cents on the dollar
4. The following are examples of vertical growth: -----. → Both Backward integration and Forward integration
5. When customers are able to eliminate middlemen like intermediaries, suppliers experience forward vertical integration. → TRUE
6. Which of the following scenarios most likely has a high buyer power? → Where switching costs are low
7. In a turnaround, 'working capital optimization' primarily focuses on which of the following? → Reducing the cash conversion cycle by managing receivables, inventory, and payables
8. What does 'revenue enhancement' mean as a turnaround lever? → Taking actions to grow or protect revenue alongside cost reduction efforts
9. What is 'succession planning' important for in a crisis situation? → Ensuring continuity of leadership if key executives depart during the turnaround
10. In a turnaround, what is the purpose of a 'vendor payment stretch' strategy? → To deliberately delay accounts payable payments beyond normal terms to preserve cash
11. What is a '100-day plan' in the context of a turnaround engagement? → A structured short-term action plan to achieve critical stabilization milestones
12. Research is conducted, and product marketing and advertising are coordinated by the ---- function. → Marketing
13. Why is IT systems stability important during an operational turnaround? → Operational disruptions from IT failures can accelerate financial losses
14. Which type of lender typically has the highest priority claim in a bankruptcy liquidation? → Secured senior lenders
15. Under which heading in the Exploring Strategy Model are environment, capability, goals, and culture covered? → Strategic position
16. What is a key performance indicator (KPI) dashboard used for in a turnaround? → Providing management real-time visibility into critical operational and financial metrics
17. Organizations can greatly benefit from strategies for ---- → All of these
18. What is 'force majeure' and how is it relevant in corporate crisis management? → A contract clause excusing performance due to extraordinary, unforeseeable events
19. What is 'hold-out' risk in a debt restructuring negotiation? → The risk that some creditors refuse to agree to the restructuring, disrupting the deal
20. What is a '13-week cash flow forecast' used for in turnaround management? → Monitoring near-term liquidity and cash runway during a crisis
21. The following are examples of vertical growth: -----. → All of these
22. What is the primary purpose of a 13-week cash flow forecast in a turnaround situation? → To provide a near-term, rolling view of liquidity and cash needs
23. What is a 'sensitivity analysis' in the context of restructuring valuation? → Testing how changes in key assumptions affect enterprise value and creditor recoveries
24. It is via business —— that novel concepts and inventive ideas are given expression and developed into beneficial goods and services. → Goals
25. What is an 'automatic stay' in Chapter 11 bankruptcy? → A court-imposed halt on most collection actions and legal proceedings against the debtor
26. Why are employee communications particularly sensitive during a turnaround? → Uncertainty about job security can trigger talent flight that undermines the turnaround
27. In crisis management, what does 'triage' refer to? → Prioritizing the most urgent issues that need immediate attention to prevent collapse
28. What is a 'carve-out' in the context of DIP financing? → A carve-out from the DIP lender's lien allowing payment of professional fees and expenses
29. Which financial metric is most commonly used to assess a distressed company's debt serviceability? → Debt service coverage ratio (DSCR)
30. Numerous companies falter because of ---- → All of these