Final answer:
Businesses conduct various activities, and not all are considered business transactions, which are economic events that affect a company's accounting. Examples include personal purchases or gifts. Accessing financial capital, borrowing from banks, issuing bonds, and stocks are crucial business operations.
Step-by-step explanation:
A company might engage in various activities that do not represent business transactions. A business transaction is an economic event with a third party that is recorded in an organization's accounting system. An example of this would be placing an order for merchandise with a supplier, which is a commitment to purchase goods and impacts the financial position of the business. However, personal activities such as buying a used laptop computer at a garage sale or ordering flowers over the internet for a friend in a different city do not fall under business transactions because they do not directly involve the company's economic standing and are not recorded in the company's accounting system.
Accessing financial capital is a significant aspect of a business's operations. A company may decide to borrow money from a bank, issue bonds, or issue stock. Borrowing has the advantage of maintaining control over the company but requires commitment to interest payments. Issuing stock provides capital but dilutes ownership and introduces accountability to a board of directors and shareholders.
Banks play an essential role in enabling transactions in the economy, by offering services like checking and savings accounts. They allow for easy withdrawal and deposit of funds through various means such as direct withdrawal, checks, and debit cards, making it unnecessary to carry large amounts of cash for transactions.