What is the role of business rules in application logic?

Business rules play a critical role in application logic by defining the conditions and logic under which an application operates. They represent the specific guidelines, constraints, and decision-making criteria that an application follows in processing data, making decisions, and managing workflows. By establishing these rules, organizations ensure consistency in how applications behave in various scenarios, which contributes to improved efficiency and better compliance with business policies.

For instance, in an insurance application, business rules may dictate how claims are processed based on specific criteria such as claim type, policy conditions, or regulatory requirements. This clear set of rules aids in automating decision-making processes, reduces errors, and enhances the overall functionality of the application.

In contrast, options that focus on data encryption processes, network connectivity, or user interface design do not pertain directly to the application logic's behavior in terms of processing and decision-making. These areas, while critical to the overall functioning of an application, relate more to technical infrastructure or user experience rather than the underlying business rules that guide how application logic operates.