From the given options, Option B is correct which states that, "compound leaves contain axillary buds" The lamina is dissected up to midrib or up to tip of the petiole to form many leaflets. Compound leaves contain axillary buds. The leaflets do not contain axillary buds. The axis of the compound leaf is called 'rachis'. A bud is present in the axil of petiole in both simple and compound leaves, but not in the axil of leaflets of the compound leaf.