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The activities needed to operate a business can be divided into a number of three types of activities. These are operating, investing, and financing activities.
What are business activities?
Business activities can be defined as kinds of activities firms conduct for achieving their purpose. It helps in generating revenues and ensuring business continuity.
The major three types of activities are operating, investing, and financing activities. Operating activities support the entity's primary purpose. Financing deals with collecting funds for financial strength and growth. Investing activities are when a business invests in long-term assets.
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