The right that a debenture holder has on the earnings of a company is
Answer Details
A debenture is a type of long-term loan that a company takes from the public, which is repaid at a fixed interest rate. Debenture holders are entitled to receive interest on their investment, which is paid regularly by the company until the debenture matures.
The right that a debenture holder has on the earnings of a company is the right to receive interest payments. Unlike shareholders who have the right to receive dividends, debenture holders are not entitled to a share in the profits of the company. Instead, they receive a fixed interest payment, which is a percentage of the face value of the debenture, usually paid twice a year.
Therefore, the correct answer is "interest". Debenture holders have a right to receive interest payments from the company as compensation for lending money to the company. This is a legal obligation of the company, and failure to make the interest payment can result in legal action by the debenture holder.