Identify the Investing Activity for a trading organisation.

The correct answer is Option (3) → Purchase of shares from other companies

Investing activities are the acquisition and disposal of long-term assets and investments. Buying shares of other companies (not held for trading) is a cash outflow from investing activities.

Option (1) Purchase of goods — Incorrect. Buying goods for resale is part of the main trading activity, so it is an operating activity.

Option (2) Rent paid — Incorrect. Rent is an operating expense, so it is an operating activity.

Option (4) Issue of Shares — Incorrect. Issuing its own shares raises capital, so it is a financing activity.