1. Capital allocation process 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: Direct Transfers Indirect Transfers through Investment Indirect Transfers through Financial Banks Intermediaries Scenario Citibank issues a loan to Jennifer for the expansion of her flower delivery business. Shylock, a moneylender in Shakespeare's play The Merchant of Venice, lends his own money to Antonio, who needs 3,000 ducats to help his friend. 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.