What is Debt ?
Debt is a type of finance raised by a company from various institutions and individuals to fulfill its long-term goals and objectives. Debt can be characterized by repayment and a fixed interest rate, i.e. the amount raised is repaid to the lender within a fixed duration and fixed interest on the sum is provided to the lender. Debt is considered a liability to the company. Borrowing from banks, loans from various institutions, debentures, loans, etc., are examples of debt.