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Leto [7]
3 years ago
9

The capital allocation process involves the transfer of capital among different entities that include individuals, small busines

ses, 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:(a) Elliot invests $25,000 by purchasing 1,000 shares of an emerging markets mutual fund. This mutual fund invests in companies in Brazil, India, and China. He bought the mutual fund from the mutual fund company.(b) Based in Grass Valley, California, L & M Seeds Co. is a small company that manufactures organic seeds. To raise capital, the company sells stocks directly to savers in Grass Valley without involving any bank or financial intermediary.(c) 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.(d) Erin borrows money from her uncle to buy a new laptop.
Business
1 answer:
Zolol [24]3 years ago
8 0

Answer:

We have to classify the transfers as Direct Transfer, Indirect Transfer Through Investment Banks, and Indirect Transfer Through Financial Intermediaries.

(a) - Indirect Transfer Through Financial Intermediaries.

A market mutual fund is a financial intermediary, and it is the option that Elliot has chosen to transfer capital.

(b) - Direct Transfer

As the statement explains, the company has not gone through any financial intermediation to raise capital. It has directly done so.

(c) - Indirect Transfer Through Investment Banks

xEdu.com hired an an investment banking to issue its initial public offering

(d) - Direct Transfer

Erin borrowed the money from his uncle without any financial intermediation.

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How much federal tax is deducted from the paycheck.
jok3333 [9.3K]

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Explanation:

3 0
2 years ago
Rushmore Company provided services for $45,000 cash during Year 1. Rushmore incurred $36,000 of operating expenses on account du
laila [671]

Answer:

The amount of the net income shown on the income statement is $9,000

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Note: Options are shown in the attachment

6 0
4 years ago
During a recent hurricane, 25 individuals of the same butterfly species were blown onto a barrier island in southern florida. du
zubka84 [21]

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3 years ago
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Answer:

Ken owns a food services company and recently negotiated a contract with a new restaurant chain. the satisfaction ken feels for this success is a(n)<u> intrinsic  motivator.</u>

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Intrinsic motivation can be defined as a kind of positivity in a person which he/she feels by doing any work of their choice. The person is satisfied internally with the work he or she chooses to do. In intrinsic motivation, the person is motivated to do a work that will satisfy himself/herself rather than satisfying any external source.

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