Final answer:
Liabilities of a company are owed to creditors, who lend money or extend credit. Issuing bonds or taking loans creates the liability to repay these creditors. Issuing stock, however, does not create a direct financial obligation to pay back the funds to investors.
Step-by-step explanation:
Liabilities of a company are owed to creditors. Creditors are individuals or institutions that lend money or extend credit to the company. When a company issues bonds or takes out loans, it promises to pay back the borrowed funds, which may include interest payments. This is a liability for the company as it represents an obligation to pay funds to the creditors.
On the other hand, if a company issues stock, it does not create an obligation to return the investors' funds, although it may choose to pay dividends. Stockholders typically acquire a share of the company ownership and may have voting rights. In contrast, venture capitalists are private investors that may provide capital while seeking to have a substantial influence over company operations and decisions.