Concept of Debt
The concept of debt implies something that is due. The concept of debt has a lot of importance in the modern business world as a lot of companies devise their business strategies around that.
Kinds of Debt
There are various kinds of debt as per the time limit of their payment. There are the short-term debts and the long-term debts. The short-term debts are those debts, which have to be repaid within a year of procuring them.
An example of short-term debt would be the loans that are taken by the corporate organizations from the banks. The current liabilities of various business entities are also a type of short-term debts. The current liabilities have to be paid to the creditors and suppliers within a short span of time.
Last Updated on : 1st July 2013