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J 22
Define the following terms:
2.2.1
Debt​

User Najam
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Answer:

Debt is something borrowed by someone from another person or corporation, usually in the form of money. Debt allows corporations and individuals to buy things they wouldn´t be able to afford without getting a loan. A debt establishes a certain amount of money to be borrowed, a specific time for the debt to be paid back, and usually an interest rate to be paid as well.

Step-by-step explanation:

The characteristics of debt are:

1. lenders and creditors don´t have ownership rights

2. lenders and creditors can force actions or restrict activities under some circumstances

3. the debt must be established by a negotiated legal document

4. missing payments can place the company or person in default and legal action can be taken.

User Steve Zavocki
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