Which of the following best describes a trade fixture?

A trade fixture is best described as items affixed to the property that serve the business. In the context of commercial properties, trade fixtures are typically pieces of equipment or other items that a tenant installs in order to conduct their business operations. These can include shelves, counters, machinery, and other improvements necessary for the business.

Trade fixtures differ from residential decorations because they are specifically intended for business use, which makes them functionally important for the enterprise rather than merely decorative. Unlike permanent structures, which are considered part of the real property and typically remain with the property upon lease termination, trade fixtures are owned by the tenant and can often be removed at the end of a lease, as they serve their business purpose. Lastly, while natural resources may be present on a property, they do not fall under the definition of trade fixtures, as those resources are not specifically related to equipment or structures that support a business.

By identifying trade fixtures correctly, one can understand the legal and practical implications for both property owners and business tenants, especially when it comes to lease agreements and the disposition of business equipment at the conclusion of a tenancy.