A person who owes money to a business is known as a:Question 2Answera.Partnerb.Debtorc.Creditord.Investor
Question
A person who owes money to a business is known as a:
- a. Partner
- b. Debtor
- c. Creditor
- d. Investor
Solution
The correct answer to your question is:
b. Debtor
A debtor is defined as an individual or entity that owes money to another individual or entity. In this context, since the person owes money to a business, they are referred to as a debtor. Here’s a brief explanation of the other options for clarity:
- Partner: This refers to an individual involved in a business partnership, sharing profits and responsibilities.
- Creditor: This term refers to the individual or entity to whom money is owed.
- Investor: An investor is someone who allocates capital with the expectation of a financial return, but they do not owe money.
Thus, the person who owes money to a business is best described as a debtor.
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