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12 Business Studies

CBSE Class 12 Business Studies

Business is a dynamic process that brings together technology, natural resources and human initiative in a constantly changing global environment. To understand the framework in which a business operates, a detailed study of the organisation and management of business processes and its interaction with the environment is required.

Business Studies at the CBSE Class 12 level develops a good understanding of the principles and practices bearing in business (trade and industry) as well as their relationship with the society.

Information Technology is becoming a part of business operations in more and more organisations.

The course in Business Studies at CBSE Class 12 level will prepare students to analyse, manage, evaluate and respond to changes which affect business. It provides a way of looking at and interacting with the business environment. It recognizes the fact that business influences and is influenced by social, political, legal and economic forces. It allows students to appreciate that business is an integral component of society and develops an understanding of many social and ethical issues.

We, at NNE, have tried to bring under one umbrella, all the resources that a student might need for his preparations for the CBSE Class 12 Business Studies exam, including sample papers, CBSE HOT (Higher Order Thinking) questions provided by the Kendriya Vidyalaya Sangathan, answer sheets of toppers.


CBSE Business Studies Syllabus For Class 12


Allocation of unit-wise marks for CBSE Class 12 Business Studies

Part A

 Unit No.

 Unit Name



Nature and significance of Management



Principles of Management



Management and Business Environment

















Part B

 Unit No.

 Unit Name



Financial Management



Financial Markets



Marketing Management



Consumer Protection


Part A: Principles and Functions of Management

Unit I: Nature and significance of Management:

  • Management - concept, objectives, importance

  • Management as Science, Art, Profession.

  • Levels of management

  • Management functions - planning, organizing, staffing, directing and controlling,

  • Coordination - characteristics and importance

Unit 2: Principles of Management

  • Principles of Management - concept, nature and significance

  • Fayol’s principles of management

  • Taylor’s Scientific Management - principles and techniques

Unit 3: Management and Business Environment

  • Business Environment - importance

  • Dimensions of Business Environment - Economic, Social, Technological, Political andLegal

  • Economic Environment in India; Impact of Government policy changes on business and industry, with special reference to adoption of the policies of liberalization, privatization and globalisation

Unit 4: Planning

  • Concept, features, importance, limitations

  • Planning process

  • Types of Plans - Objectives, Strategy, Policy, Procedure, Method, Rule, Budget,Programme.

Unit 5: Organising

  • Concept and importance.

  • Steps in the process of organising.

  • Structure of organization - functional and divisional.

  • Formal and informal organization.

  • Delegation: concept, elements and importance.

  • Decentralization: concept and importance.

Unit 6: Staffing

  • Concept and importance of staffing

  • Staffing as a part of Human Resource Management

  • Staffing process

  • Recruitment - meaning and sources

  • Selection - process

  • Training and Development - Concept and importance. Methods of training

Unit 7: Directing

  • Concept and importance

  • Elements of Directing

  • Supervision - concept and role
  • Motivation - concept, Maslow’s hierarchy of needs
  • Financial and non-financial incentives.
  • Leadership - concept ; qualities of a good leader
  • Communication - concept , formal and informal communication; barriers to effective communication.

Unit 8: Controlling

  • Concept and importance

  • Relationship between planning and controlling

  • Steps in the process of control

  • Techniques of controlling : budgetary control

Part B : Business Finance and Marketing

Unit 9: Financial Management

  • Concept, importance, objectives of financial management

  • Financial decisions : factors affecting

  • Financial planning - concept and importance.

  • Capital Structure - concept and factors affecting

  • Fixed and Working Capital - concept and factors affecting its requirements.

Unit 10: Financial Markets

  • Concept of Financial Market: Money Market and its instruments.

  • Capital market and types - primary and secondary market.

  • Stock Exchange - functions, Trading Procedure, NSEl, OCTEI.

  • Securities and Exchange Board of India (SEBI)- Objectives and Functions.

Unit 11: Marketing Management

  • Marketing - concept, functions and role, marketing and selling

  • Marketing management philosophies.

  • Marketing mix - elements

  • Product - nature, classification, branding, labeling and packaging
  • Price - Factors determining fixation of price
  • Physical distribution: Elements; Channels of distribution : types, function, choice of channels
  • Role of Promotion -Elements of promotion mix; Advertising - concept, merits and limitations, objections against advertising. Personal selling - concept, importance;Sales promotion - concept, merits, limitations, methods ; Publicity - concept and importance.

Unit 12: Consumer Protection

  • Importance of consumer protection

  • Consumer rights

  • Consumer responsibilities

  • Ways and means of consumer protection - Consumer awareness and legal redressal with

  • reference to Consumer Protection Act.

  • Role of consumer organizations and NGOs.