Debt Management
Strategies for managing business borrowing.
Real World
Elon Musk's acquisition of Twitter (now X) in 2022 loaded the company with $13 billion in debt, forcing immediate cost-cutting to service interest payments and demonstrating the operational impact of poor debt management.
Exam Focus
Distinguish between managing debt levels and managing debt cost — refinancing at lower interest rates is a valid strategy examiners reward in 12-mark answers.
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