The Ferengi Alliance was the formal name for the Ferengi government, whose seat of power was on the homeworld Ferenginar. The government of the Ferengi Alliance was dedicated to the promotion of Ferengi profit and commerce. It was overseen by the Grand Nagus from the Tower of Commerce on Ferenginar. The Nagus's power derived from both the Ferengi Bill of Opportunities and Rules of Acquisition.
Agencies and institutions
Despite a strong spirit of laissez-faire regarding commerce, the Alliance maintained numerous agencies to regulate Ferengi business and trade. Though ostensibly created to oversee Ferengi business practices and ensure adherence to regulation, these agencies appeared to be constructed as much to create opportunities for graft, bribery and corruption as any legitimate purpose.
The Ferengi Commerce Authority (or FCA) was an agency of the Alliance concerned with business practices and the enforcement of trade under Ferengi Trade By-Laws and Code. Agents of the FCA were known as Liquidators, led by the Board of Liquidators, all of whose offices were located on the 40th floor of the Tower of Commerce in the Sacred Marketplace on Ferenginar. (DS9: "Family Business")
Domestically, advancement in Ferengi government was based on bribery and patronage. A Ferengi who aspired to a higher position in any government agency, in particular the FCA, was expected to earn a large profit not just for himself but for his superiors. Even seeking an audience with a senior government official required a donation of latinum. (DS9: "Family Business")
Generally, the Ferengi Alliance stayed neutral in the politics of the galaxy, since the Ferengi were solely interested in profit and making enemies diminished possible business opportunities. In the spirit of free enterprise, most Ferengi business ventures were made without the knowledge of the government. As a result, while a number of hostile conflicts occurred between the Federation and the Ferengi in the 2360s, the Ferengi Alliance itself was not considered responsible. (TNG: "Bloodlines")
The Ferengi Alliance has never actually fought in any large-scale interstellar war, which Quark considers an accomplishment which makes it morally superior to even the Federation. (DS9: "The Jem'Hadar") Generally, when the Ferengi Alliance comes into conflict with another galactic power, they peacefully apply economic pressure using their considerable financial resources (raising or lowering trade restrictions, etc.) until they can force the other power to agree to a peace treaty at the negotiation table, preferably one in the Ferengi Alliance's favor. (DS9: "The Siege of AR-558")
The Ferengi Alliance maintained official neutrality during the Dominion War, though it believed its natural business interests to lie with the Alpha Quadrant powers. Similarly, during the Occupation of Bajor the Ferengi took no sides and traded equally with the Cardassians and Bajorans. (DS9: "Business as Usual")
The official practice of neutrality, however, did not guarantee the Alliance favorable relations with all races. The Klingons were known to despise Ferengi in almost all circumstances, despite no history of bad relations between the two governments. However, even as a neutral power, the economic might of the Ferengi Alliance gave them significant influence in the galaxy.
The Ferengi Alliance maintained a military which consisted mostly of D'Kora-class marauder craft. The military was used to protect the business ventures of various Ferengi entrepreneurs, not to wage war. A Marauder was usually commanded by a DaiMon who was authorized to open new trade negotiations on behalf of the Alliance. (TNG: "The Last Outpost", "The Price")
Rank was indicated by insignia on the Ferengi uniform but also by small green tattoos on the right part of the forehead. The tattoo consisted of the Ferengi logo and depending on rank, additional chevrons next to the logo. A DaiMon's tattoo consisted of the logo and two chevrons.
The Battle of Prexnak, between the Ferengi and Lytasians, was the most important battle in Ferengi History. A similar operation was undertaken in 2374 between the Ferengi and Dominion, the only "encounter" the two powers had during the Dominion War. (DS9: "The Magnificent Ferengi")