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Business components are contained within the business tier of the J2EE platform - a multi-tiered application model used to build and develop enterprise-wide applications.
The logic of an enterprise-wide application is divided into different functionality-based components. These are installed and run on different machines, depending on where the components belong within the J2EE architecture. The logic of a particular domain (also known as the business code) is handled by the enterprise beans, which run in the business tier. These domains may be banking, finance, retail, etc...
Business components are also referred to in software where they usually describe blocks of programming code that are related to the various components of an enterprise such as the domains described above.
The enterprise-wide application business logic is handled by the enterprise beans (a bean is a type of server) running in the business tier and solves or meets the needs of a domain.
The business tier’s enterprise bean first receives processed client data. If necessary, this data is then sent to the enterprise information system (EIS) tier, where it is stored. Finally, the enterprise bean collects the the stored data, processes it as needed and returns the retrieved data to the client program.