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 i the scenario with its appropriate classification in three ways. in the table below, identify the nature of capital transfer given in indirect transfers indirect transfers through financial through investment intermediaries banks direct transfers scenario israel launched a 10-year global bond issue of $1.5 billion in early 2009. leading investment banks like citigroup, deutsche bank, and goldman sachs managed the deal. (source: reuters. com, mar. 18, 2009.) 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 a small startup firm has each of the partners contribute $50,000 in capital to the company make payroll for the next three months steve's grandfather loans him $30,000 to start a smali coffee shop in the east village in manhattan.