CBSE Class 12 Business Studies Revision Notes

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Total Papers : 12

Total Papers : 12

Class 12 Business Studies Marks Distribution
Units Marks
Part A : Principles and Functions of Management
Nature and Significance of Management 16
Principles of Managemen
Business Environment
Planning 14
Staffing 20
Total 50
Part B : Business Finance and Marketing
Financial Managemen 15
Financial Market
Marketing Management 15
Consumer Protection
Total 30
Project Work (One) 20
Grand Total 100

Structure of CBSE Class 12 Business Studies Sample Paper is

Type of Question Marks per Question Total No. of Questions Total Marks
Objective Type Questions 1 20 20
Short Answer Type Questions - 1 3 5 15
Short Answer Type Questions - 1 4 3 12
Long Answer Type Questions - 1 5 3 15
Long Answer Type Questions - 2 6 3 18
Total 34 80

CBSE Syllabus for Class 12 Business Studies

Unit 1: Nature and Significance of Management 


  • Management - concept, objectives, and importance 
  • Management as Science, Art and Profession 
  • Levels of Management 
  • Management functions-planning, organizing, staffing, directing and controlling 
  • Coordination- concept and importance 

Learning Outcome : 

  • Understand the concept of management.
  • Explain the meaning of Effectiveness and Efficiency.
  • Discuss the objectives of management.
  • Describe the importance of management. 
  • Examine the nature of management as a science, art and profession. 
  • Understand the role of top, middle and lower levels of management 
  • Explain the functions of management 
  • Discuss the concept and characteristics of coordination. 
  • Explain the importance of coordination. 

Unit 2: Principles of Management 

Concepts :

  • Principles of Management- concept and significance 
  • Fayol’s principles of management 
  • Taylor’s Scientific management- principles and techniques 

Learning Outcome :

  • Understand the concept of principles of management. 
  • Explain the significance of management principles. 
  • Discuss the principles of management developed by Fayol.
  • Explain the principles and techniques of ‘Scientific Management’.
  • Compare the contributions of Fayol and Taylor. 

Unit 3: Business Environment

Concepts :

  • Business Environment- concept and importance
  • Dimensions of Business EnvironmentEconomic, Social, Technological, Political and Legal 
  • Demonetization - concept and features

Learning Outcome :

  • Understand the concept of ‘Business Environment’. 
  • Describe the importance of business environment 
  • Describe the various dimensions of ‘Business Environment.
  • Understand the concept of demonetization 

Unit 4: Planning

Concepts : 

  • Concept, importance and limitation
  • Planning process
  • Single use and standing plans. Objectives, Strategy, Policy, Procedure, method Rule, budget and Programme 

Learning Outcome :

  • Understand the concept of planning.
  • Describe the importance of planning.
  • Understand the limitations of planning.
  • Describe the steps in the process of planning. 
  • Develop an understanding of single use and standing plans.
  • Describe objectives, policies, strategy, procedure, method, rule, budget and programme as types of plans. 

Unit 5: Organising 

Concepts : 

  • Concept and importance  
  • Organising Process 
  • Structure of organisation- functional and divisional concept. Formal and informal organisation- concept
  • Delegation: concept, elements and importance
  • Decentralization: concept and importance Understand the concept of decentralisation.

Learning Outcome :

  • Understand the concept of organizing as a structure and as a process. 
  • Explain the importance of organising. 
  • Describe the steps in the process of organizing
  • Describe functional and divisional structures of organisation.
  • Explain the advantages, disadvantages and suitability of functional and divisional structure.
  • Understand the concept of formal and informal organisation.
  • Discuss the advantages, disadvantages of formal and informal organisation. 
  • Understand the concept of delegation.
  • Describe the elements of delegation.
  • Appreciate the importance of Delegation.
  • Explain the importance of decentralisation.
  • Differentiate between delegation and decentralisation. 

Unit 6: Staffing 

Concepts : 

  • Concept and importance of staffing.
  • Staffing as a part of Human Resource Management concept 
  • Staffing process  
  • Recruitment process  Selection – process  
  • Training and Development - Concept and importance, Methods of training - on the job and off the job - vestibule training, apprenticeship training and internship training 

Learning Outcome :

  • Understand the concept of staffing. 
  • Explain the importance of staffing.
  • Understand the specialized duties and activities performed by Human Resource Management
  • Describe the steps in the process of staffing.
  • Understand the meaning of recruitment. 
  • Discuss the sources of recruitment. 
  • Explain the merits and demerits of internal and external sources of recruitment.
  • Understand the meaning of selection. 
  • Describe the steps involved in the process of selection.
  • Understand the concept of training and development.
  • Appreciate the importance of training to the organisation and to the employees.
  • Discuss the meaning of induction training, vestibule training, apprenticeship training and internship training.
  • Differentiate between training and development.
  • Discuss on the job and off the job methods of training.

Unit 7: Directing

Concepts :

  • Concept and importance
  • Elements of Directing
  • Motivation - concept, Maslow’s hierarchy of needs, Financial and non-financial incentives
  • Leadership - concept, styles - authoritative, democratic and laissez faire
  • Communication - concept, formal and informal communication; barriers to effective communication, how to overcome the barriers

Learning Outcome :

  • Describe the concept of directing. 
  • Discuss the importance of directing
  • Describe the various elements of directing
  • Understand the concept of motivation. 
  • Develop an understanding of Maslow’s Hierarchy of needs. 
  • Discuss the various financial and non-financial incentives.
  • Understand the concept of leadership.
  • Understand the various styles of leadership.
  • Understand the concept of communication 
  • Understand the elements of the communication process. 
  • Discuss the concept of formal and informal communication. 
  • Discuss the various barriers to effective communication. 
  • Suggest measures to overcome barriers to communication.

Unit 8: Controlling

Concepts :

  • Controlling - Concept and importance
  • Relationship between planning and controlling
  • Steps in process of control

Learning Outcome :

  • Understand the concept of controlling.
  • Explain the importance of controlling.
  • Describe the relationship between planning and controlling
  • Discuss the steps in the process of controlling.

Part B: Business Finance and Marketing 

Unit 9: Financial Management 

Concepts :

  • Concept, role and objectives of Financial Management
  • Financial decisions: investment, financing and dividend- Meaning and factors affecting
  • Financial Planning - concept and importance
  • Capital Structure – concept and factors affecting capital structure
  • Fixed and Working Capital - Concept and factors affecting their requirements

Learning Outcome :

  • Understand the concept of financial management.
  • Explain the role of financial management in an organisation.
  • Discuss the objectives of financial management
  • Discuss the three financial decisions and the factors affecting them.
  • Describe the concept of financial planning and its objectives.
  • Explain the importance of financial planning.
  • Understand the concept of capital structure.
  • Describe the factors determining the choice of an appropriate capital structure of a company.
  • Understand the concept of fixed and working capital.
  • Describe the factors determining the requirements of fixed and working capital.

Unit 10: Financial Markets 

Concepts :

  • Financial Markets: Concept
  • Money Market: Concept
  • Capital market and its types (primary and secondary)
  • Stock Exchange - Functions and trading procedure
  • Securities and Exchange Board of India (SEBI) - objectives and functions

Learning Outcome :

  • Understand the concept of financial market.
  • Understand the concept of money market.
  • Discuss the concept of capital market.
  • Explain primary and secondary markets as types of capital market.
  • Differentiate between capital market and money market.
  • Distinguish between primary and secondary markets.
  • Give the meaning of a stock exchange.
  • Explain the functions of a stock exchange.
  • Discuss the trading procedure in a stock exchange.
  • Give the meaning of depository services and demat account as used in the trading procedure of securities.
  • State the objectives of SEBI.
  • Explain the functions of SEBI.

Unit 11: Marketing 

Concepts :

  • Marketing – Concept, functions and philosophies
  • Marketing Mix – Concept and elements
  • Product - branding, labelling and packaging – Concept
  • Price - Concept, Factors determining price
  • Physical Distribution – concept, components and channels of distribution
  • Promotion – Concept and elements; Advertising, Personal Selling, Sales Promotion and Public Relations

Learning Outcome :

  • Understand the concept of marketing.
  • Explain the features of marketing.
  • Discuss the functions of marketing.
  • Explain the marketing philosophies.
  • Understand the concept of marketing mix.
  • Describe the elements of marketing mix.
  • Understand the concept of product as an element of marketing mix.
  • Understand the concept of branding, labelling and packaging.
  • Understand the concept of price as an element of marketing mix.
  • Describe the factors determining price of a product.
  • Understand the concept of physical distribution.
  • Explain the components of physical distribution.
  • Describe the various channels of distribution.
  • Understand the concept of promotion as an element of marketing mix.
  • Describe the elements of promotion mix.
  • Understand the concept of advertising.
  • Understand the concept of sales promotion.
  • Discuss the concept of public relations.

Unit 12: Consumer Protection 

Concepts :

  • Concept and importance of consumer protection
  • The Consumer Protection Act, 2019:
  • Meaning of consumer
  • Rights and responsibilities of consumers Who can file a complaint?
  • Redressal machinery
  • Remedies available
  • Consumer awareness - Role of consumer organizations and Non-Governmental Organizations (NGOs)

Learning Outcome :

  • Understand the concept of consumer protection.
  • Describe the importance of consumer protection.
  • Discuss the scope of Consumer Protection Act, 2019
  • Understand the concept of a consumer according to the Consumer Protection Act, 2019.
  • Explain the consumer rights
  • Understand the responsibilities of consumers
  • Understand who can file a complaint and against whom?
  • Discuss the legal redressal machinery under Consumer Protection Act, 2019.
  • Examine the remedies available to the consumer under Consumer Protection Act, 2019.
  • Describe the role of consumer organizations and NGOs in protecting consumers’ interests.

For Preparation of exams students can also check out other resource material

CBSE Class 12 Business Studies Sample Papers

CBSE Class 12 Business Studies Worksheets

CBSE Class 12 Business Studies Test Papers

CBSE Class 12 Business Studies Important Questions

CBSE Class 12 Business Studies Question Papers

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