Question

what are the 3 types of business activities? explain with examples​

Answer 1

Answer:

There are three main types of business activities: operating, investing, and financing. The cash flows used and created by each of these activities are listed in the cash flow statement

Answer 2

Business activities can be divided into three categories: operating, investing, and financing.

• Any activity a business engages in with the primary intent of turning a profit is considered a business activity. This is a broad term that refers to all of the economic activities that a company engages in while conducting business.

• Operating, investing, and financing activities are ongoing in the business with the goal of maximizing value for shareholders.

Operating Business Activities:

• The majority of the company's cash flow comes from its operating activities, which include manufacturing, distributing, marketing, and selling. These activities have a significant impact on the company's profitability.

Investing Business Activities:

• Business activities involving investments: Business activities involving investments relate to the long-term use of cash and include purchasing or selling real estate or equipment as well as gains and losses from holdings in the financial markets and running subsidiaries.

Financing Business Activities:

• Business activities that require financing include borrowing money from banks or investors, paying dividends or buying back stock with cash received from shareholders, and repaying loans.

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