The capital allocation process involves the transfer of capital among different entities that include individuals, small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital flows freely between entities that want to supply capital to those who want it This flow of capital can be classified in three ways. In the table below, identify the nature of capital transfer given in the scenario with its appropriate classification: Indirect Transfers through Investment Banks Indirect Transfers through Financial Intermediaries Scenario Direct Transfers Shylock, a moneylender in Shakespeares play The Merchant of Venice, lends his own money to Antonio, who needs 3,000 ducats to help his friend Citibank issues a loan to Jennifer for the expansion of her flower delivery business Entrepreneurs often start businesses by seeking financial help from family and friends xEdu.com is an early-stage start-up company that plans to issue its first public common stock-called an initial public offering (IPO)-in six months. It hires an investment bank to underwrite the issue
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