In build-borrow-or-buy framwork,a firm's internal resources are considered to be relevant when they are of capital in nature.
Given an incomplete sentence related to build- borrow-or-buy framework.
We are required to fill the sentence so that we will get an appropriate meaning of the sentence.
In build-borrow-buy-framework a company needs to determine whether it has to fulfil its empty or semi empty resources through building the resources, borrow the resources or simply buy the resources.
In build-borrow-buy- framework the company needs to keep in mind the decision when the resources are capital in nature because it involves huge money and it involves huge risk.
When company has to build the capital asset then it involves huge cost and the company needs to determine its budget.
When company has to borrow the capital asset then there is less requirement of funds at one point of time. For example: rent of asset,etc.
When company has to buy the capital asset then the company needs to determine how many years that asset can give the company.
Hence in build-borrow-or-buy framework,a firm's internal resources are considered to be relevant when they are of capital in nature.
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