debt

Vocabulary Word

Definition

'Debt' is money or something else that you have to pay back. It's like a loan you've taken, and you have an obligation to repay it to the lender.

Examples in Different Contexts

In the corporate world, companies often take on 'debt' to fund expansion or new projects. A CFO might state, 'We've secured a debt financing deal to initiate our new factory setup.'

Practice Scenarios

Law

Scenario:

The company has defaulted on several payments. This non-compliance may have serious legal repercussions.

Response:

In that case, we should negotiate with our creditors and devise a plan to settle the debt.

Business

Scenario:

Our company has been performing well this year, but we must carefully manage our financial resources to remain sustainable.

Response:

That's true. And focusing on reducing our debt should be our top priority.