Question

A person who owes money to business is creditor. (State True or False)

Answer 1

answer this false this answer

Answer 2

Answer:

False

Explanation:

A person who owes money to business is creditor - False

A creditor is an entity or individual lending cash to another party or extending credit, whereas a debtor is an entity or individual who owes cash to another party. For example, a debtor is an individual who has taken out a loan at a bank for a new house.

Thus, there is a creditor and a debtor in every lending arrangement. An entity that lends money is likely to be in business solely for this purpose.