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. A turnaround professional is hired to assess a distressed manufacturer. Their FIRST priority should be: → Stabilizing cash flow and securing immediate liquidity
2. The concept of 'strategic fit' in turnaround management refers to: → Alignment between a company's resources, capabilities, and its chosen strategy
3. In financial restructuring, what does 'enterprise value' represent? → The total value of the business to all stakeholders, including debt and equity
4. What does DIP financing stand for in restructuring? → Debtor-In-Possession financing
5. Which of the following is the most accurate definition of 'insolvency'? → A company's inability to pay its debts as they come due
6. What does 'par' mean in the context of distressed debt trading? → The face value of the debt instrument at 100 cents on the dollar
7. Which of the following frameworks is MOST useful for evaluating the long-term attractiveness of an industry when formulating a turnaround strategy? → Porter's Five Forces
8. What does 'leverage' mean in a corporate finance context? → The use of debt to amplify potential returns (and risks)
9. Which financial statement best reveals a company's short-term liquidity crisis? → Cash flow statement
10. Which of the following metrics is MOST useful for assessing whether a turnaround strategy is improving a company's fundamental earnings power? → EBITDA margin trend over consecutive quarters
11. The following are examples of vertical growth: -----. → Both Backward integration and Forward integration
12. When customers are able to eliminate middlemen like intermediaries, suppliers experience forward vertical integration. → TRUE
13. Which of the following scenarios most likely has a high buyer power? → Where switching costs are low
14. In a turnaround, 'working capital optimization' primarily focuses on which of the following? → Reducing the cash conversion cycle by managing receivables, inventory, and payables
15. What does 'revenue enhancement' mean as a turnaround lever? → Taking actions to grow or protect revenue alongside cost reduction efforts
16. A company operating in a 'mature' industry phase is most likely to face: → Intense competition, margin compression, and slower growth
17. What is 'succession planning' important for in a crisis situation? → Ensuring continuity of leadership if key executives depart during the turnaround
18. Which of the following is an example of a 'revenue enhancement' strategy in a turnaround plan? → Re-pricing products upward for high-value customer segments
19. 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
20. What is a '100-day plan' in the context of a turnaround engagement? → A structured short-term action plan to achieve critical stabilization milestones
21. Research is conducted, and product marketing and advertising are coordinated by the ---- function. → Marketing
22. Why is IT systems stability important during an operational turnaround? → Operational disruptions from IT failures can accelerate financial losses
23. Which type of lender typically has the highest priority claim in a bankruptcy liquidation? → Secured senior lenders
24. A company's quick ratio is 0.6. What does this indicate? → The company may struggle to meet short-term obligations without selling inventory
25. Under which heading in the Exploring Strategy Model are environment, capability, goals, and culture covered? → Strategic position
26. What is a key performance indicator (KPI) dashboard used for in a turnaround? → Providing management real-time visibility into critical operational and financial metrics
27. The Balanced Scorecard in strategy execution measures performance across how many perspectives? → Four
28. Organizations can greatly benefit from strategies for ---- → All of these
29. What is 'force majeure' and how is it relevant in corporate crisis management? → A contract clause excusing performance due to extraordinary, unforeseeable events
30. What is 'accounts receivable days' (DSO) used to measure? → The average number of days it takes to collect payment from customers