Business Logic

AAA

DEFINITION of 'Business Logic'

Custom rules or algorithms that handle the exchange of information between a database and user interface. Business logic essentially consists of business rules, which are policies that govern various aspects of a business, and workflows, which are sequences of steps that specify in detail the flow of information or data. Also known as business rules or domain logic.

INVESTOPEDIA EXPLAINS 'Business Logic'

The algorithms involved in business logic perform behind-the-scenes data processing that is invisible to the user, but is critical to keeping things running smoothly in today's economy.


For example, a credit card issuer's business logic may specify that out-of-state credit card transactions above a certain limit, say $500, be flagged as suspicious, and the issuer contacted as soon as possible to confirm the authenticity of the transaction. 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.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Facility Operations

    Includes all the services required to ensure a facility will ...
  3. Workflow

    A series of tasks to produce a desired outcome, usually involving ...
  4. Web Syndication

    A term that refers to a marketing strategy for websites. Web ...
  5. Business Model

    The plan implemented by a company to generate revenue and make ...
  6. Business

    1. An organization or enterprising entity engaged in commercial, ...
RELATED FAQS
  1. How does private placement affect share price?

    Private placement is a common method of raising business capital through offering equity shares. Private placements can be ... Read Full Answer >>
  2. What are some examples of prime cost items?

    In business finance, prime costs are the two types of basic expenses required to produce a product for sale: raw materials ... Read Full Answer >>
  3. What is the prime cost formula?

    The term "prime cost" refers to the direct costs of manufacturing an item. It is calculated by adding the cost of raw materials ... Read Full Answer >>
  4. How do I set up a Limited Liability Company (LLC)?

    The specific process and procedures for organizing a limited liability company (LLC) vary from state to state. However, the ... Read Full Answer >>
  5. What steps are necessary for a business to secure equity financing?

    An equity financing arrangement creates a long-term, mutually beneficial relationship between investors and a startup or ... Read Full Answer >>
  6. What should be included in a restaurant business model?

    The most important elements of a restaurant business model include the restaurant's unique value proposition, menu choices, ... Read Full Answer >>
Related Articles
  1. Markets

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  2. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  3. Entrepreneurship

    Reality Check: Why Startups Fail

    New ventures have only a 50% chance of making it through the first five years. Find out why.
  4. Professionals

    Management Strategies From A Top CEO

    Find out what this winning manager did to grow one of the biggest companies in the world.
  5. Entrepreneurship

    Run Your Personal Finances Like A Business

    The principles that contribute to success in business can also help you achieve your financial goals.
  6. Entrepreneurship

    10 Breakout Ideas For Small Businesses

    If your business has hit a wall, we've got the answer to break through and increase sales and earnings.
  7. Entrepreneurship

    What is a Business?

    As a general term, business means the commercial activities of an individual or group engaging in some type of financial transaction.
  8. Taxes

    What's an Audit?

    An audit is an objective examination of accounting records that makes sure the records are a fair and accurate representation of the transactions they claim to represent.
  9. Investing

    Facebook Vs. Weibo

    When China banned Facebook in 2009, potentially 1.36 billion people needed a new place to post their random thoughts and vacation selfies. Enter Weibo.
  10. Investing

    Weibo Stock Fundamentals

    "China's Twitter" might look undervalued compared to its western counterpart, but don't be fooled. Weibo may not be a bargain after all.

You May Also Like

Hot Definitions
  1. Fracking

    A slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations ...
  2. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  3. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  4. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  5. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  6. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
Trading Center