Question

A company typically engages in three sets of activities. These include the day-to-day activities which are classified as ________ activities and the raising of capital needed to run the company which is considered a(n).

Answer 1

Answer:

Operating activities

Explanation:

A company typically engages in three sets of activities. These include the day-to-day activities which are classified as operating activities and the raising of capital needed to run the company.

Operating activities are the daily activities of a business entity which involves functions such as sales and production of product(s), revenue generation, etc.

Another way to look at operating activities are in the light of routine activities of the organisation. Cashflows generated therefrom are referred to as operating cashlows in the cashflow statement whereas profit generated from these day-to-day activities are referred to as operating profit.