ENTREPRENEURSHIP

Detailed explanation-1: -A debtor is a person or entity that owes money. The entity may be an individual, a firm, a government, a company or other legal person. The counterparty is called a creditor.

Detailed explanation-2: -A creditor is an individual or institution that extends credit to another party to borrow money usually by a loan agreement or contract.

Detailed explanation-3: -Creditors are individuals/businesses that have lent funds to another company and are therefore owed money. By contrast, debtors are individuals/companies that have borrowed funds from a business and therefore owe money.

Detailed explanation-4: -Creditors are stakeholders who are owed money by the business. Creditors are typically suppliers that have delivered goods or services to the business but the business has not yet paid the supplier for those goods and services. Was this answer helpful?