Module 1.
INTRODUCTION TO BUSINESS LOGIC
This module will deal on business logic on a business administration
perspective. Definition of business will be discussed as well as an introduction to logic.
Correlation on the use of logic in business decision will be introduced.
At the end of this module the students are expected to:
1. Define what business is as well as its purpose.
2. Identify the types and forms of businesses
3. Define what logic is
4. Learn importance of business logic in the business decision process
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 fffffrom sole proprietorships, corporations, and partnerships.
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.
Definition of Logic
a proper or reasonable way of thinking about or understanding something
a science that studies the principles of correct reasoning.
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
Finally, a conclusion is drawn
An example of logic is deducing that two truths imply a third truth as shown
below:
ALL:
Premises: All Filipinos are happy people.
Danny is a happy person.
Conclusion: Danny is a Filipino.
ONLY:
Premises: Only Filipinos are happy people.
Danny is a happy person.
Conclusion: Danny is a Filipino.
SOME:
Premise: If only kittens are cats and some cats are dogs,
Conclusion: Some kittens are dogs
NONE:
Premises: No Reyes is ugly.
Annie is a Reyes.
Conclusion: Annie is ugly.
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Business logic is the custom rules or algorithms that handle the exchange of
information between a database and user interface.
Business logic is essentially the part of a computer program that contains the
information (in the form of business rules) that defines or constrains how a business
operates.
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.
Sources and references:
1. https://www.investopedia.com/terms/b/businesslogic.asp
2. THE DECISION MODEL A Business Logic Framework Linking Business and Technology
by Barbara von Halle and Larry Goldberg.
3. The concept of the business logic for the management of values-based food
businesses and chains by : Susanne von Münchhausen, Karlheinz Knickel, Anna
Häring sEberswalde University for Sustainable Development (HNEE)
