What does a terminal branch in a cladogram indicate?

A terminal branch in a cladogram represents the end point of a lineage, which can include both extinct and extant species. In a cladogram, the branching patterns illustrate evolutionary relationships among different groups of organisms based on shared characteristics. When the terminal branch points to a species that is still alive, it indicates an extant species. Conversely, if the branch points to a species that no longer exists today, it indicates an extinct species. Therefore, it's accurate to conclude that terminal branches can denote both types, making the choice the correct one. This dual representation highlights the evolutionary lineage that may include various species, capturing the complexity and history of life forms across time.