Question: J 10 Answer fast 4. Capital allocation process The capital aliocai'ion process involves the transfer of capital among different entities, which include individuals, governmenls, small

J 10

Answer fast

J 10 Answer fast 4. Capital allocation process
4. Capital allocation process The capital aliocai'ion process involves the transfer of capital among different entities, which include individuals, governmenls, small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital ows freer between entities who want t0 supply it and those who want to receive 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 classication: Indirect Indirect Transfers Transfers through through Direct Investment Financial Scenario Transfers Banks Intermediaries Erin borrows money.r from her uncle to buy a new laptop. 0 O 0 Based in Niagara on the Lake, Ontario, Tamonv Winery is a small winery that produces ice wine. To raise capital, the companyI sells stocks directly to savers in the Niagara region without O O 0 involving any bank or nancial intermediary. iEdu.com is an earlystage startup company that plans to issue its first public common stock called an initial public offering (IPOJin six months. It hires an investment bank to underwrite O O O the issue. Ontario Public Service Pension Plan (PSPP) manages pension and health benets of Ontario public employees and retirees. PSPP collects moneyr from its participants and creates a pool of assets. It manages these assets by making investments across domestic and international ma rkets

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