Final answer:
The decision referred to as the rent-versus-buy decision is TRUE, encompassing both business decisions for IT assets and personal ones for housing. This involves weighing the pros and cons of each option through a cost/benefit analysis.
Step-by-step explanation:
The decision to purchase your own IT assets or rent them from external providers is indeed often referred to as the rent-versus-buy decision, making the statement TRUE. This is a common economic decision that businesses face, similar to individuals deciding whether to buy or rent a home. The rent-versus-buy decision in both contexts is essentially about comparing the financial and strategic advantages and disadvantages of ownership versus leasing.
For businesses, this decision can include considerations such as the cost of capital, expected duration of the asset's use, technological obsolescence rates, and flexibility in managing financial resources. Similarly, when analyzing housing options, individuals need to weigh the pros and cons of home ownership, such as the potential for property value appreciation (a benefit) against responsibilities like maintenance costs (a cost).
A cost/benefit analysis is a useful tool in this decision-making process, where costs (financial, effort, other sacrifices) are weighed against benefits (money saved, time, experience, other improvements). In the housing context, the advantages of buying include the potential to build equity and make the space your own, while the disadvantages include the initial costs and ongoing responsibilities for repairs and maintenance. On the other hand, the advantages of renting include lower initial costs and flexibility to move, but the major disadvantage is that renters do not build equity in the property.