Concept:A debenture holder is a lender to the company, not an owner.
As a creditor, they receive a fixed return on the loan given.
Explanation:A debenture is a written loan agreement issued by a company.
It promises to pay the holder a fixed rate of
interest on the face value of the debenture.
This interest is usually paid yearly or half-yearly, regardless of whether the company makes a profit.
The interest is treated as a charge against the company’s profit before any dividend is paid.
Therefore, the entitlement of a debenture holder is
interest, not dividend, commission, or profit.
Answer:B. Interest