What term refers to the claims lenders have against a business?

The correct term that refers to the claims lenders have against a business is liabilities. Liabilities are financial obligations or debts that a company owes to external parties, such as lenders or creditors. This encompasses loans, accounts payable, mortgages, and any other form of debt that requires repayment. In essence, liabilities represent the claims restricted to assets that are linked to financing from outside the business.

In contrast, assets refer to resources owned by the business that have economic value, such as cash, inventory, or equipment. Capital typically refers to the financial resources that a business utilizes to fund its operations and growth, which can include debt as well as equity. Equity represents the ownership interest in the business after all liabilities have been deducted from assets, indicating the net worth of the owners or shareholders rather than the obligations to creditors. Understanding the distinction between these terms is crucial for managing a business's financial health and obligations effectively.