Final answer:
A company's operating activities are related to the main functions of the business and can be categorized as operating and non-operating. Operating encompasses everyday business activities, while non-operating refers to peripheral financial events.
Step-by-step explanation:
A company's operating activities are related to the revenues and expenses generated from the primary activities of the business. These activities fall into two categories: operating and non-operating.
Operating activities include all the revenue-generating activities of the business, such as sales and services, as well as operating expenses like wages, rent, and utilities. Non-operating activities are those that are not a part of the day-to-day business operations, such as investment income or losses from selling fixed assets.
The correct answer to the question is therefore 'a) Operating and non-operating'. This categorization is critical for understanding a company's financial performance and its core profitability, excluding irregular or peripheral activities.