QuestionAugust 5, 2025

Jessica invests money with a friend who is purchasing a small food truck, in return for a share of the business. What type of transaction is this? a. a primary market transaction b. a direct transfer of capital c. a financial intermediary transaction d. a money market transaction e. an exchange of physical assets: cash for a share of the business

Jessica invests money with a friend who is purchasing a small food truck, in return for a share of the business. What type of transaction is this? a. a primary market transaction b. a direct transfer of capital c. a financial intermediary transaction d. a money market transaction e. an exchange of physical assets: cash for a share of the business
Jessica invests money with a friend who is purchasing a small food truck, in return for a share of the
business. What type of transaction is this?
a. a primary market transaction
b. a direct transfer of capital
c. a financial intermediary transaction
d. a money market transaction
e. an exchange of physical assets: cash for a share of the business

Solution
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Answer

b. a direct transfer of capital Explanation 1. Identify the nature of the transaction Jessica is directly investing money with a friend for a share in the business, indicating a direct exchange between two parties without any intermediaries.

Explanation

1. Identify the nature of the transaction<br /> Jessica is directly investing money with a friend for a share in the business, indicating a direct exchange between two parties without any intermediaries.
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