Question

After multiple years of building a business in the same location, Timothy has

found that he must vacate the building where his business has always been
based. Which of the following is the most likely explanation for this?
A. Timothy has been leasing the space and now has the opportunity
to purchase it by paying the residual value.
B. Timothy has been leasing his space, the lease has expired, and the
owner of the property does not wish to renew.
C. Timothy has purchased the property but not yet taken possession
of it.
D. Timothy had a sales contract in place, but it has not yet been
signed.

Answer 1

Answer: B. Timothy has been leasing his space, the lease has expired, and the owner of the property does not wish to renew.

Step-by-step explanation:

A lease refers to a written agreement whereby a lessor leases his property to the lessee for a period of time and the owner of the property gets paid for the period that the property is leased out.

In this case, since Timothy needs to vacate the building where his business has always been after some number of years, it simply means that Timothy leased the space and the owner doesn't want to renew the lease.