When Old Short-Term Debt Is Replaced by New Short-Term Debt

question 14

Multiple Choice

When old short-term debt is replaced by new short-term debt as the old debt comes due, the process is known as:

• A)compensating balance
• B)rolling the debt
• C)fluctuating financing
• D)none of the above

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Definitions:

Venture Philanthropy

A form of philanthropy that applies venture capital principles like investing in innovation, performance measurement, and operational support to achieve social impact.

Value-Added Funding

Investment that not only provides capital but also adds value through strategic advice, industry connections, or management expertise.

Social Purpose Ventures

Business activities designed primarily to achieve social goals, with profit often seen as a means to sustain the mission rather than an end in itself.

Economically Viable Entity

An organization or business that has the capacity to generate sufficient income to sustain its operations profitably.