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4. Capital allocation process The capital allocation process involves the transfer of capital among different entities, which include individuals, governments, small businesses, banks, financial intermediaries,
4. Capital allocation process The capital allocation process involves the transfer of capital among different entities, which include individuals, governments, small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital flows freely between entities who want to 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 classification
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