Tom owns and operates a minimart. Which of Tom’s actions described below are business transactions? Explain why any other actions are not considered transactions.
1. Tom reduces the price of a gallon of milk in order to match the price offered by a competitor.
2. Tom pays a high school student cash for cleaning up the driveway behind the market.
3. Tom fills his son’s car with gasoline in payment for his son’s restocking the vending machines and the snack food shelves.
4. Tom pays interest to himself on a loan he made to the business three years ago.