Velu owns and operates a minimart. Which of Velu’s actions described below are business transactions? Explain why any other actions are not considered transactions.

1. Velu reduces the price of a gallon of milk in order to match the price offered by a competitor.

2. Velu pays a high school student cash for clearing up the driveway behind the market.

3. Velu tills his son’s car with gasoline in payment for his son’s restocking the vending machines and the snack food shelves.

4. Velu pays interest to himself a loan he made to the business three years ago.