Which of the following are two primary activities commonly found in many businesses?

• A. Taxation and Marketing activities
• B. Budgeting and Auditing activities
• C. Financing and Operating activities
• D. Investing and Advertising activities

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of the question. The problem is asking about primary activities commonly found in many businesses. These activities are fundamental to the functioning and financial management of a business.
2. Step 2: Recall the three main categories of business activities in financial accounting: Operating activities, Investing activities, and Financing activities. These are the core activities that businesses engage in to generate revenue, manage resources, and fund operations.
3. Step 3: Operating activities involve the day-to-day functions of a business, such as selling goods or services, paying employees, and managing expenses. These activities are directly related to the production and delivery of goods or services.
4. Step 4: Financing activities involve transactions related to raising capital for the business, such as issuing shares, borrowing money, or repaying loans. These activities are essential for funding the operations and growth of the business.
5. Step 5: Compare the options provided in the question. Taxation, Marketing, Budgeting, Auditing, and Advertising are not categorized as primary activities in financial accounting. The correct answer is 'Financing and Operating activities,' as these are two of the three primary categories of business activities.