Final answer:
A debtor-creditor relationship exists when one person or entity owes money to another person or entity and is obligated to repay it.
Step-by-step explanation:
A debtor-creditor relationship exists when a person or entity owes money to another person or entity. This relationship is created when one party, known as the debtor, borrows money or receives goods or services on credit from the other party, known as the creditor. The debtor is obligated to repay the money or fulfill their obligations as agreed upon with the creditor.