Business Rules

Other examples of business rules include requiring a rental agent to disallow a rental tenant if their credit rating is too low, or requiring company agents to use a list of preferred suppliers and supply schedules. While a business rule may be informal or even unwritten, documenting the rules clearly and making sure that they don't conflict is a valuable activity.[citation needed] When carefully managed, rules can be used to help the organization to better achieve goals, remove obstacles to market growth, reduce costly mistakes, improve communication, comply with legal requirements, and increase customer loyalty.

A business rule defines or constrains some aspect of business and always resolves to either true or false. Business rules are intended to assert business structure or to control or influence the behavior of the business.[1] Business rules describe the operations, definitions and constraints that apply to an organization. Business rules can apply to people, processes, corporate behavior and computing systems in an organization, and are put in place to help the organization achieve its goals.[citation needed] For example, a business rule might state that no credit check is to be performed on return customers.

In general, business rules define specific instructions or constraints on how certain day-to-day actions should be performed. For example, business rules can include: A decision-making approval structure for invoice processing where only certain managers can sign off on invoices totaling a specific amount.