Operating, financing and investing activities refer to the four primary ways businesses manage their finances. Operating activities are processes that directly affect a company’s income statement. These activities include sales, purchases, and payments of expenses. Financing activities involve the management of long-term debt, such as issuing or repaying loans or bonds. Investing activities are decisions about allocating money for long-term investments with returns generated over many years. These activities can include buying or selling fixed assets like land and buildings, making equity investments in other companies, or taking out stock or bond investments. Knowing and managing these activities is key to achieving successful financial outcomes for your business.