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

Tech

Scenario:

The code we shipped last week was a necessary quick fix, but it may have long-term consequences if not reviewed carefully.

Response:

Agreed, we should schedule some sprints to address the technical 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.