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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
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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:

  1. Partner: This refers to an individual involved in a business partnership, sharing profits and responsibilities.
  2. Creditor: This term refers to the individual or entity to whom money is owed.
  3. 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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