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What are the three main types of Business Activities/Explain business activities

What are the three main types of Business Activities?

Business activities involves all those activities which help to run the business to earn profit. it comprises many activities financing, investing, operating (marketing, production, delivering)
Following are three main business activities  
       Financing Activities:
Financing activities are those activities in which we deals with finance related task like 
company needs cash to invest in business then through finance activity the company 
become able to meet with finance requirements. Financing activities include the inflow 
of cash from investors such as banks and shareholders, as well as the outflow of cash to 
shareholders as dividends as the company generates income. There are also other 
activities which impact the long-term liabilities and equity of the company are also 
listed in the financing activities.
Financing activities is basically involved with financing the company. Any transaction like a loan or anything bought on credit would be this type. The interest paid would be considered a financing activity and would go in that section of the Statement of Cash Flows. Dividends paid to shareholders or the repurchase of stock would also be considered a financing activity.
     
 Investing Activities:
In financing activities we arrange finance for the company investments after this company decides where to invest the finance to earn profits, its not like day to day activity it involves long term plans of the company, Investing activities also include purchases or sales of an asset (land, building, equipment, marketable securities etc) Returns on investment by investing activities are used solely for investing purposes. Small term investments would be considered obviously, but any loans made to customers or other entities would also be considered an investing transaction. Dividends and interest earned on investments would also qualify under the investing category for Statement of Cash Flows. Purchases of long term investments such as land, equipment or property will also be viewed as an investment.
             
       Operating Activities:
This activity is considered as the base of the business or we can say that it is the fundamental activity of the business.After getting finance and utilizing the finance in investing activity it is the operating activity which helps the business to produce and sale more products to earn more profit.
Operating activities of the business engages in the production, sales delivery of the company’s product as well as collecting payment from its customers this includes purchasing raw material, inventory advertising and shipping the product. Operating activities involves day-to-day business practices in order to run the company. This would be anything from paying bills and receiving cash from customers.

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