Which type of business expense can be categorized as "ordinary"?

Business expenses classified as "ordinary" are defined as those that are common and accepted in the particular industry where a business operates. Marketing expenses fit this criterion perfectly. They are standard operational costs that businesses regularly incur to promote their products or services, making them an expected part of doing business.

In contrast, expenditures to settle lawsuits may be necessary but are not considered ordinary in the context of routine business operations. Personal vacations do not contribute to business activities and are therefore not considered business expenses. Likewise, using funds for personal bills does not align with business expenditures, as those expenses are separate from the functions of the business. Thus, marketing expenses stand out as the only type that is regularly incurred in the course of operating a business, thereby qualifying as ordinary expenses.