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9. Return to the guarantees or promises in Question 4. Consider everything you've learned
about this business, and explain how this business keeps borrowers in a cycle of debt.


Sagot :

The business-owners need both creditors and debtors to function effectively

What are Guarantees & Promises?

A guarantees refers to a promise that something will be done or not be done if something happen while Promises does not need something to happen to be done

Usually, the business-owners keeps its borrowers in a cycle of debt because they act as a good cash-flow which is a features of good business and it is necessary because of the benefit from interest accruals

In conclusion, the business-owners need both creditors and debtors to function effectively.

Read more about guarantees

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