Step 1: Recall the characteristics of combinational circuits.
Combinational circuits depend only on the present inputs.
They do not store previous information.
Step 2: Recall the characteristics of sequential circuits.
Sequential circuits contain memory elements such as flip-flops.
Therefore, their outputs depend on
- present inputs, and
- previous states.
Hence,
\[
\boxed{\text{Sequential circuits have memory elements}.}
\]
Therefore,
\[
\boxed{(D)}
\]
is the correct answer.