When a company replaces old debt with new debt, this is known as:
A)restructuring
B)refinancing
C)re-evaluating
D)re-investing

Question

Quizplus · Accepted Answer

When a company replaces old debt with new debt, it is known as refinancing. This process involves issuing new debt to pay off the old debt, with the goal of taking advantage of lower interest rates or getting better terms on the debt. Restructuring involves making changes to a company's debt or equity structure, while re-evaluating and re-investing do not specifically relate to debt management.

When a Company Replaces Old Debt with New Debt, This