Who is defined as an individual that owes money?

The correct answer is the term that refers specifically to an individual or entity that owes money. In financial contexts, the term "debtor" is utilized to describe someone who has borrowed money and must repay it to the lender. This relationship typically arises in various scenarios, such as loans, credit agreements, or other financial transactions where obligations are established.

Understanding the role of a debtor is crucial, especially in the context of funerals and end-of-life planning, where various costs are involved, and individuals or families often need to manage debts and payment structures.

The other terms represent different roles in financial transactions: a creditor is someone who lends money; a shareholder owns shares in a corporation; and an investor puts money into financial schemes or assets with the expectation of generating returns. Knowing these distinctions clarifies the specific obligations and rights associated with each role, particularly for funeral service practitioners who may encounter various financial situations related to their services.