Which provision addresses the option for the lessee to acquire ownership of the equipment at the end of the lease?

• A. Purchase Order
• B. Purchase Option
• C. Advance Funding/Pre-Funding Agreement
• D. Identification of Parties

Answer: (B)

The key idea is the provision that gives the lessee the right to take ownership of the equipment at the end of the lease. That is the purchase option. It specifically grants the ability to buy the asset when the lease ends (often for a set or bargain price). This is distinct from a purchase order (a standard buying document), an advance funding/pre-funding agreement (about how funds are provided), or identification of parties (who is signing). So the purchase option is the clause that directly addresses ownership transfer at lease end.