Final answer:
External entities are those that interact with a system by providing input or receiving output but do not engage in the processing of information within the system itself.
Step-by-step explanation:
Those entities which perform no information processing activities for the system are external entities. An external entity can be thought of as an actor that interacts with the system but is not part of the system itself. They supply input to or receive output from the system but do not process information within the system's boundary. For example, customers or suppliers interacting with a business system can be considered external entities as they provide and receive information but do not affect the internal workings of the business system.