Which of the following is a common strategy used in liability management?

Debt refinancing is a common strategy used in liability management because it allows a company to manage its existing debt more effectively. This process typically involves replacing an existing debt obligation with a new one, often at more favorable terms, such as a lower interest rate or extended maturity. By refinancing, companies can reduce their debt service costs, improve their cash flow, and better align their debt structure with their operational needs or market conditions.

In the context of financial distress or restructuring, debt refinancing can also provide a way to negotiate with creditors and potentially avoid bankruptcy, making it a critical tool for companies looking to improve their financial health and sustainability. Other strategic choices such as enhanced product development, market expansion, and employee training programs typically focus on growth and operational efficiency rather than directly addressing the management of liabilities.