Business Logic Definition of Business A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations. Business types range from limited liability companies, sole proprietorships, corporations, partnerships, limited liability companies. There are businesses that run as small operations in a single industry while others are large operations that spread across many industries around the world Types of Businesses Many businesses organize themselves around some sort of hierarchy or bureaucracy, where positions in a company have established roles and responsibilities. The most common structures include: Sole proprietorships: As the name suggests, a sole proprietorship is owned and operated by a single natural person Partnerships: A partnership is a business relationship between two or more people who join forces to conduct business. Each partner contributes resources and money to the business and shares in the profits and losses of the business. Corporations: A corporation is a business in which a group of people acts together as a single entity. Owners are commonly referred to as shareholders who exchange consideration for the corporation's common stock. Limited liability companies (LLCs): This is a relatively new business structure and was first available in the United States in 1977 and other states in the 1990s. A limited liability company combines the pass-through taxation benefits of a partnership with the limited liability benefits of a corporation. Definition of Logic a proper or reasonable way of thinking about or understanding something a science that studies the principles of correct reasoning. The process of making inferences based upon observed patterns, or simple repetition. Often used in reference to predict about what will happen or does happen based upon what has happened The study of truths based completely on the meanings of the terms they contain Logic is a process for making a conclusion and a tool you can use The foundation of a logical argument is its proposition or statement. The proposition is either accurate (true) or not accurate (false) Premises are the propositions used to build the argument The argument is then built on premises Then an inference is made from the premise Finally a conclusion is drawn An example of logic is deducing that two truths imply a third truth as shown below: Premises: Bicycles have two wheels. Jan is riding a bicycle Conclusion: Jan is riding on two wheels Explanation: The premises are true and so is the conclusion, Premises: All squares are rectangles. All rectangles have four sides. Conclusion: All squares have four sides. Premises: Red lights prevent accidents. Mike did not have an accident while driving today. Conclusion: Mike must have stopped at a red light. Explanation: Mike might not have encountered any traffic signals at all. Therefore, he might have been able to avoid accidents even without stopping at a red light. Business Logic Business logic can be seen in the workflows that they support, such as in sequences or steps that specify in detail the proper flow of information or data, and therefore decision- making. Business logic is also known as "domain logic." Business Logic vs. Business Rules Business rules are useless without business logic to determine how data is calculated, changed, and transmitted to users and software. But without business rules to create a framework, business logic cannot exist. Business logic is any part of a business enterprise that makes up a system of processes and procedures, whereas anything else is an example of a business rule. Business Logic Examples A credit card issuer's business logic may specify that out-of-state credit card transactions above a certain limit, say Php20,000, be flagged as suspicious and the issuer contacted as soon as possible to confirm the authenticity of the transaction. The policy of flagging such a transaction is an example of a business rule; the actual process of flagging the transaction is an example of business logic. Given that millions of credit card transactions are conducted every single day, business logic enables such transactions to be checked and processed in an efficient and timely manner. Another example the application of VAT on invoices is a business rule but the calculations involved in applying it are implemented as business logic. Logic in business In the world of competition, it has become crucial to prove something true or false but reaching at objectivity will help in business research and development and assist managers to make practical decisions. For discovering the objective reality, it is not rational to set aside logic. Businessmen and managers must thinking critically and objectively will be their key to success. Logic is a study to distinguish between correct and incorrect reasoning which is vital in making various business decisions. Business persons need to be efficient in developing argument and bargaining so this helps the businessmen becoming wise and making rational decisions, while understanding good argumentation can help them spot the faulty arguments that are used to manipulate them for instance sellers want to sell products that don't actually work or medical products that are not for the prescribed problem. Hence, they can be spared from waste of money by buying such products. Thank you for listening!
