What are ‘business rules’?

Business rules are critical components of an organization’s operations and decision-making processes. They are specific statements that clearly define or constrain some aspect of the business, such as behavior, actions, and constraints within a business process. Business rules can dictate how certain business operations are to be conducted and can also outline internal policies, regulatory compliance, and stakeholder requirements. These rules help ensure consistency and guide the organization in making decisions that align with its overall objectives.

In the context of this question, the correct choice identifies the essence of business rules accurately by highlighting their role in defining parameters that govern business activities and decisions. They provide a framework for ensuring that operations are efficient, compliant, and aligned with business strategies.