English

Creditors have a legal claim to receive the amount owed and may enforce repayment terms or take legal action if the debt is not repaid as agreed.

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Question

Creditors have a legal claim to receive the amount owed and may enforce repayment terms or take legal action if the debt is not repaid as agreed.

Options

  • True

  • False

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Solution

True

Explanation:

Creditors are parties owed money and hold a legal claim to repayment; they may enforce agreed repayment terms, demand security or take legal action (such as suing or enforcing collateral) if the debtor fails to pay.

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Chapter 1: Stakeholders in Commercial Organisations - EXERCISES [Page 9]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 1 Stakeholders in Commercial Organisations
EXERCISES | Q 26. | Page 9
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