TMA Study Guide 2026
Everything you need to pass the TMA exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 TMA Exam Format at a Glance
📚 TMA Topics to Study (23)
✍️ Sample TMA Questions & Answers
1. What is the 'exclusivity period' in Chapter 11?
The exclusivity period, initially 120 days under the Bankruptcy Code, gives the debtor the sole right to file a reorganization plan before creditors can propose competing plans.
2. What is the first priority in an operational turnaround engagement?
The immediate priority in any operational turnaround is to stabilize cash flow by identifying and stopping cash drains before implementing longer-term improvements.
3. Which of the following best describes 'negative working capital' and when it can be a sign of financial strength rather than distress?
Negative working capital—where current liabilities exceed current assets—can be healthy in cash-forward business models (e.g., retail, subscription) where customers pay upfront and suppliers are paid later, creating a built-in funding source.
4. What does 'revenue enhancement' mean as a turnaround lever?
Revenue enhancement encompasses pricing improvements, sales force effectiveness, and customer retention initiatives that grow the top line alongside cost-cutting measures.
5. What is 'management credibility' and why does it matter in a turnaround?
If stakeholders don't believe management's projections or commitments, it is nearly impossible to negotiate a restructuring — credibility must be established or restored for the process to succeed.
6. What is a 'borrowing base' in the context of asset-based lending?
A borrowing base is the formula-driven calculation—typically a percentage of eligible receivables plus eligible inventory—that determines the maximum amount a borrower can draw under an ABL facility.