Types of business activity
Types of Business Activities A business is a complex organism with many moving parts. To understand how it works, we need to categorize its activities. In general, commercial activities can be classified into three major types. 1. Sales activities These are daily features that support business. They are directly related to revenue generation and expenditure commitment. • Production or service delivery • Sales and marketing • Distribution Examples : manufacturing products, providing services, selling goods, managing customer requests. 2. Investing Activities These include the acquisition and sale of assets that will generate future profits or cash flows. • Purchase of real estate, plant and equipment • Invest in other businesses • Disposal of assets: • Examples : purchase new equipment, invest in a startup, sell a building. 3. Financing activities This activity aims to obtain funds for financing the business and managing the capital structure. • Financing: • Issu...
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