What are the three main types of business activity? Give examples of each activity.
QUESTION
What are the three main types of business activity?
Give examples of each activity.
The three main types of business activities are operating, financing and investing. All these three activities involve cash flow but the use of money decides the category to which it belongs. Operating activities constitute the daily business activities carried out by the firm in running its business. For example, paying bills and salaries to employees. Financing activities are the transactions carried out for
ancing the company operations like issue of capital, taking loan etc. While investing activities dont form any part of the companys daily activities, rather these are solely for investing purposes. For example, interest or dividends earned on investments, asset purchased etc.
ANSWER:
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