Answer: Option A
Answer: (a)
A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed. The second party is frequently called a debtor or borrower.
An incorporated entity is a separate legal entity that has been incorporated through a legislative or registration process established through legislation. Both bondholders and stockholders are creditors of a corporation.