Debt: Difference between revisions
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A debt is created when a [[creditor]] agrees to [[loan|lend]] a sum of assets to a [[debtor]]. In modern society, debt is usually granted with expected repayment; in many cases, plus [[interest]]. Historically, debt was responsible for the creation of [[indentured servant]]s. | A debt is created when a [[creditor]] agrees to [[loan|lend]] a sum of assets to a [[debtor]]. In modern society, debt is usually granted with expected repayment; in many cases, plus [[interest]]. Historically, debt was responsible for the creation of [[indentured servant]]s. | ||
:''This article is based on text from Wikipedia, available under the GFDL.'' | |||
[[Category:Based on Wikipedia]] | |||
Latest revision as of 15:55, 2 January 2009
Debt is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy.
A debt is created when a creditor agrees to lend a sum of assets to a debtor. In modern society, debt is usually granted with expected repayment; in many cases, plus interest. Historically, debt was responsible for the creation of indentured servants.
- This article is based on text from Wikipedia, available under the GFDL.