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 proces
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 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 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 andprocedures, 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.
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.
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
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
medical products that are not for the prescribed problem. Hence, they can be spared from
waste of money by buying such products
Review Questions:

a. Research on the following

Name 5 examples of existing businesses whether local or abroad. If you can add the
business locations, it would be better.
- Sole proprietorship
- Partnership
- Corporation
- LLC
b. Give the importance of business logic in the decision making process? Cite one
business scenario where business logic can be applied
Sources and
references:
1.
[Link]
om/terms/b/businesslogic.a
sp
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 Eberswalde
University for Sustainable
Development (HNEE
Sources and references:
1. [Link]
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 Eberswalde
University for Sustainable Development (HNEE