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Answer Posted / kavita
Debt is that which is owed; usually referencing assets
owed, but the term can also cover moral obligations and
other interactions not requiring money. 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.[citation needed]
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.
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