OBJECTIVE: Corporations: A corporation is a business in which a group of people

acts together as a single entity. Owners are commonly referred to as

At the end of this module the students are expected to: shareholders who exchange consideration for the corporation's common stock.
1. Define what business is as well as its purpose.
2. Identify the types and forms of businesses
Limited liability companies (LLCs): This is a relatively new business
3. Define what logic is structure and was first available in the United States in 1977 and other states in
4. Learn importance of business logic in the business decision process 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 Business Definition of Logic
 A business is defined as an organization or enterprising entity engaged  a proper or reasonable way of thinking about or understanding
in commercial, industrial, or professional activities. something
 Businesses can be for-profit entities or non-profit organizations.  a science that studies the principles of correct reasoning.
 Business types range from limited liability companies, sole  The process of making inferences based upon observed patterns, or
proprietorships, corporations, partnerships, limited liability companies. simple repetition. Often used in reference to predict about what will
 There are businesses that run as small operations in a single industry happen or does happen based upon what has happened
while others are large operations that spread across many industries  The study of truths based completely on the meanings of the terms
around the world. they contain
Types of Businesses  Logic is a process for making a conclusion and a tool you can use
 The foundation of a logical argument is its proposition or
Many businesses organize themselves around some sort of hierarchy or statement.
bureaucracy, where positions in a company have established roles and
responsibilities. The most common structures include: The proposition is either accurate (true) or not accurate (false)

Sole proprietorships: As the name suggests, a sole proprietorship is Premises are the propositions used to build the argument
owned and operated by a single natural person The argument is then built on premises
Then an inference is made from the premise
Partnerships: A partnership is a business relationship between two or Finally, a conclusion is drawn
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.
An example of logic is deducing that two truths imply a third truth as shown is any part of a business enterprise that makes up a system of processes and
below: procedures, whereas anything else is an example of a business rule.
Premises: Bicycles have two wheels. Jan is riding a bicycle
Conclusion: Jan is riding on two wheels Business Logic Examples
Explanation: The premises are true and so is the conclusion, 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
Premises: All squares are rectangles. as suspicious and the issuer contacted as soon as possible to confirm the
All rectangles have four sides.
authenticity of the transaction. The policy of flagging such a transaction is
Conclusion: All squares have four sides.
an example of a business rule; the actual process of flagging the transaction is
Premises: Red lights prevent accidents. Mike did not have an accident while driving an example of business logic. Given that millions of credit card transactions are
today. conducted every single day, business logic enables such transactions to be
Conclusion: Mike must have stopped at a red light. checked and processed in an efficient and timely manner.
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. Another example is the application of VAT on invoices is a
business rule but the calculations involved in applying it are implemented
Business Logic as business logic.
Business logic is the custom rules or algorithms that handle the exchange of
information between a database and user interface. Logic in business
In the world of competition, it has become crucial to prove something
Business logic is essentially the part of a computer program that contains the true or false but reaching at objectivity will help in business research and
information (in the form of business rules) that defines or constrains how a development and assist managers to make practical decisions. For discovering
business operates. the objective reality, it is not rational to set aside logic.
Businessmen and managers must think critically and objectively will
Business logic can be seen in the workflows that they support, such as be their key to success. Logic is a study to distinguish between correct and
in sequences or steps that specify in detail the proper flow of information or incorrect reasoning which is vital in making various business decisions.
data, and therefore decision-making. Business logic is also known as "domain
logic. Business persons need to be efficient in developing argument and
bargaining so this helps the businessmen becoming wise and making
Business Logic vs. Business Rules rational decisions, while understanding good argumentation can help them
Business rules are useless without business logic to determine how data is spot the faulty arguments that are used to manipulate them for instance sellers
calculated, changed, and transmitted to users and software. But without want to sell products that don't actually work or medical products that are not
business rules to create a framework, business logic cannot exist. Business logic for the prescribed problem. Hence, they can be spared from waste of money
by buying such products.