Which of the following strategies would require a business to outlay the most amount of capital for building space?

Choosing to purchase a building necessitates the most significant outlay of capital because it involves the upfront payment or financing costs associated with acquiring real estate. When a business purchases a building, it typically commits a substantial amount of financial resources upfront, including the cost of the property, closing costs, inspections, and potential renovations required to tailor the space to the company’s needs. This contrasts with other strategies, such as renting or leasing, which generally involve lower initial financial commitments, focusing instead on periodic payments rather than a significant one-time expense.

Renting a building usually entails monthly payments without the need for a substantial upfront investment, making it more financially accessible in the short term. Leasing equipment similarly requires periodic payments rather than a single significant capital expenditure, and subleasing office space often involves terms that allow for lower financial commitment and flexibility. Thus, in terms of capital outlay for building space, purchasing a building stands out as the option requiring the most significant investment.