CBSE Syllabus for Class 12 Business Studies

Course Structure for Class XII Business Studies (2017-18)

Units Marks
Part A Principles and Functions of Management
1 Nature and Significance of Management 16
2 Principles of Management
3 Business Environment
4 Planning 14
5 Organizing
6 Staffing 20
7 Directing
8 Controlling
Part B Business Finance and Marketing
9 Financial Management 15
10 Financial Markets
11 Marketing Management 15
12 Consumer Protection
Part C Project Work 20
Total 100

Part A: Principles and Functions of Management

Unit I: Nature and Significance of Management

Management – concept, objectives and importance

  • Concept includes meaning and features
  • Management as Science, Art and Profession
  • Levels of management
  • Management functions – planning, organising, staffing, directing and controlling
  • Coordination – concept, characteristics and importance
After going through this unit, the student/ learner would be able to:

  • 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

  • Principles of Management – concept, nature and significance
  • Fayol’s principles of management
  • Taylor’s Scientific Management – principles and techniques
After going through this unit, the student/learner would be able to:

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

Unit 3: Business Environment

  •  Business Environment – concept and importance
  • Dimensions of Business Environment – Economic, Social, Technological, Political and Legal
  • Impact of Government policy changes on business with special reference to liberalization, privatization and globalisation in India.
After going through this unit, the student/ learner would be able to:

  • Understand the concept of ‘Business Environment’.
  • Describe the importance of business environment.
  • Describe the various dimensions of ‘Business Environment’.
  • Examine the impact of government policy changes on business in India with reference to liberalisation, privatization and globalisation since 1991.
  • Discuss the managerial response to changes in business environment.

Unit 4: Planning

  • Concept, importance and limitations
  • Planning process
  • Single use and Standing Plans – Objectives, Strategy, Policy, Procedure, Method, Rule, Budget and Programme.
After going through this unit, the student/ learner would be able to:

  • 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

  • Concept and importance.
  • Organizing Process.
  • Structure of organization – functional and divisional.
  • Formal and informal organization.
  • Delegation: concept, elements and importance.
  • Decentralization: concept and importance.
After going through this unit, the student/ learner would be able to:

  • Understand the concept of organizing as a structure and as a process.
  • Explain the importance of organising.
  • Describe the steps in the process of organising.
  • 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.
  • Understand the concept of decentralisation.
  • Explain the importance of decentratisation.
  • Differentiate between delegation and decentralisation.

Unit 6: Staffing

  • Concept and importance of staffing
  • Staffing as a part of Human Resource Management
  • Staffing process:
  • Recruitment – sources;
  • Selection – process
  • Training and Development – Concept and importance. Methods of training- on the job and off the job- Induction training, vestibule training, apprenticeship training and internship training.
After going through this unit, the student/ learner would be able to:

  • Understand the concept of staffing.
  • Explain the importance of staffing.
  • Understand the spicialised 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.

Unit 7: Directing

  • Concept and importance
  • Elements of Directing
  • Supervision – concept, functions of a supervisor;
  • Motivation – Concept, Maslow’s hierarchy of needs; Financial and non-financial incentives;
  • Leadership – concept, styles – authoritative, democratic and laissenz faire;
  • Communication – concept, formal and informal communication; barriers to effective; communication, how to overcome the barriers.
After going through this unit, the student/ learner would be able to:

  • Describe the concept of directing.
  • Discuss the importance of directing
  • Describe the four elements of directing
  • Understand the concept of supervision.
  • Discuss the functions performed by a supervisor.
  • 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, merits and demerits of formal and informal communication.
  • Discuss the various barriers to effective communication.
  • Suggest measures to overcome barriers to communication.

Unit 8: Controlling

  • Concept, nature and importance
  • Relationship between planning and controlling
  • Steps in the process of control
After going through this unit, the student/learner would be able to:

  • 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

  • Concept and objectives of financial management.
  • Financial decisions: investment, financing and dividend and factors affecting.
  • Financial planning – concept and importance.
  • Capital Structure – concept and factors affecting.
  • Fixed and Working Capital – concept and factors affecting their requirements.
After going through this unit, the student/learner would be able to:

  • 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

  • Financial Markets: concept and types.
  • Money market and its instruments.
  • Capital market and its types (primary and secondary).
  • Stock Exchange – functions and training procedure.
  • Securities and Exchange Board of India (SEBI) – objectives and functions.
After going through this unit, the student! learner would be able to:

  • Understand the concept of financial market.
  • Explain the functions of financial market.
  • Understand capital market and money market as types of financial markets.
  • Understand the concept of money market.
  • Describe the various money market instruments.
  • Discuss the concept of capital market.
  • Explain primary and secondary markets as types of capital market.
  • Differentiate between capital market and money market.
  • Discuss the methods of floating new issues in the primary 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 Management

  • Marketing – concept and functions.
  • Marketing management philosophies.
  • Marketing Mix – concept
  • Product – concept, branding, labeling and packaging.
  • Price – factors determining price.
  • Physical distribution- concept, channels of distribution: types, choice of channels.
  • Promotion -concept and elements; advertising- concept, role, objections against advertising, personal selling – concept and qualities of a good salesman, sales promotion – concept and techniques, public relations – concept and role.
After going through this unit, the student/learner would be able to:

  • Understand the concept of setting, marketing.
  • Explain the features of marketing.
  • Distinguish between marketing and setting.
  • Describe the concept of marketing management.
  • Discuss the functions of marketing.
  • Explain marketing management 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.
  • Discuss the factors determining the choice of 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.
  • Describe the rote of advertising.
  • Examine the objections to advertising.
  • Understand the concept of personal selling.
  • Discuss the qualities of a good salesman.
  • Understand the concept of sales promotion.
  • Explain the commonly used techniques of sates promotion.
  • Discuss the concept and role of public relations.

Unit 12: Consumer Protection

  • Concept and importance of consumer protection.
  • Consumer Protection Act 1986
  • Meaning of consumer and consumer protection.
  • Rights and responsibilities of consumers
  • Who can file a complaint and against whom?
  • Redressal machinery.
  • Remedies available.
  • Consumer awareness – Role of consumer organizations and Non-Governmental Organizations (NGOs).
After going through this unit, the student/ learner would be able to:

  • Understand the concept of consumer protection.
  • Describe the importance of consumer protection.
  • Discuss the scope of Consumer Protection Act, 1986
  • Understand the concept of a consumer according to the Consumer protection Act 1986.
  • 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 1986.
  • Examine the remedies available to the consumer under Consumer protection Act 1986.
  • Describe the role of consumer organizations and NGOs in protecting consumers’ interests.

Unit 13: Project Work

NCERT Solutions