Final answer:
Apple Inc. engages in operating activities like sales, investing activities like purchasing machinery for manufacturing, and financing activities such as issuing stocks or bonds. These activities reflect how Apple manages daily operations, long-term investments, and capital structure. Companies can raise the required capital through early-stage investors, reinvestment of profits, loans, or selling stock.
Step-by-step explanation:
Operating, investing, and financing activities are components of a company’s financial statements, which reflect different aspects of its financial performance and health. A real company example is Apple Inc. Operating activities include daily transactions related to business operations such as selling products, acquiring inventory, or paying employee wages. Investing activities involve transactions for the acquisition or sale of long-term assets, for example, Apple purchasing machinery for manufacturing or selling a part of their property. Financing activities include transactions involving raising capital and returning capital to shareholders, such as Apple issuing stocks or bonds, payback of loans, or distributing dividends.
Firms can raise the capital needed for investing in such assets by early-stage investment, reinvesting profits, borrowing through banks or bonds, and selling stock. The decision on which source of capital to utilize impacts both the company's financial structure and the way it compensates its capital providers.