Find the area of a parallelogram with a base of 16 cm, where the height is 7 cm less than the base.

The base ($b$) is $16 \text{ cm}$.
The height ($h$) is $7 \text{ cm}$ less than its base.

$$h = b - 7 \text{ cm} = 16 \text{ cm} - 7 \text{ cm} = 9 \text{ cm}$$

The area ($A$) of a parallelogram is given by the formula $A = b \times h$.

$$A = 16 \text{ cm} \times 9 \text{ cm} = 144 \text{ cm}^2$$

The correct option is B.

The final answer is $\boxed{\text{B) } 144 \text{ cm}^2}$.