Which document contains the option for the lessee to acquire ownership at the end of the lease?

• A. Purchase Order
• B. Purchase Option
• C. Advance Funding
• D. Identification of Parties

Answer: (B)

A lease may include a purchase option that gives the lessee the right to own the asset at the end of the term. This option is typically documented in a purchase option clause or rider, which sets out the price and conditions under which ownership transfers. That makes the purchase option the document that contains the ownership-right at the end of the lease. The other documents have different purposes: a purchase order authorizes buying goods, advance funding covers upfront financing, and identification of parties simply lists who is involved in the agreement.