MANAGEMENT

Detailed explanation-1: -The business activities are classified into three different types namely operating activity, investing activity, and financing activity.

Detailed explanation-2: -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. The cash flow statement is meant to be a reconciliation of net income on an accrual basis to cash flow.

Detailed explanation-3: -Business activity is any activity related to the purpose of making a profit. It is often divided into operating activities, investing activities and financing activities. Of these, operating activities tend to be considered the most important as they have the most direct impact on a company’s performance.

Detailed explanation-4: -There are three fundamental kinds of business activities: financing business activity, investing business activity, and operating business activity.

Detailed explanation-5: -At the top level, they are often classified according to the three-sector theory into sectors: primary (extraction and agriculture), secondary (manufacturing), and tertiary (services).