The command is simply open (which can also be used for opening directories). The most basic example of launching an application:
open /path/to/some.app
More complex possibilities also exist:
open «/Volumes/Macintosh HD/foo.txt»
opens the document in the default application for its type (as determined by LaunchServices).
open /Applications/
opens that directory in the Finder.
open -a /Applications/TextEdit.app «/Volumes/Macintosh HD/foo.txt»
opens the document in the application specified (in this case, TextEdit).
open -e «/Volumes/Macintosh HD/foo.txt»
opens the document in TextEdit (the -e option specifies TextEdit).
open http://www.apple.com/
opens the URL in the default browser (lynx, naturally *wink*)
open «file://localhost/Volumes/Macintosh HD/foo.txt»
opens the document in the default application for its type (as determined by LaunchServices).
open «file://localhost/Volumes/Macintosh HD/Applications/»
opens that directory in the Finder.
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