Final answer:
Financing activities involve obtaining cash to launch and sustain a company.
Step-by-step explanation:
On the statement of cash flows, the activities that obtain the cash needed to launch and sustain a company are categorized as Financing activities. Financing activities involve obtaining funds from external sources such as issuing bonds, borrowing money from banks or bonds, or selling stock.
For example, when a company issues bonds or borrows money, they receive cash that can be used to finance their operations. Similarly, if a company sells stock, they receive cash from investors that can be used to support the growth and development of the company.