CBSE Class 12 Board Exam Business Studies Syllabus

Business Studies syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Business Studies in CBSE Class 12 Board Exam, not a summary of it.

1. 1

   Principles and Functions of Management

   4 topics

   • Nature and Significance of Management
     • Concept, objectives and importance
     • Management as science, art and profession
     • Levels and functions of management
   • Principles of Management
     • Fayol's fourteen principles
     • Taylor's scientific management
   • Planning and Organising
     • Planning process and types of plans
     • Organising structure and delegation
     • Formal and informal organisation
   • Staffing, Directing and Controlling
     • Recruitment, selection and training
     • Motivation, leadership and communication
     • Controlling process and techniques
2. 2

   Business Finance and Marketing

   3 topics

   • Financial Management
     • Financial decisions and planning
     • Capital structure and leverage
     • Fixed and working capital
   • Financial Markets
     • Money market and capital market
     • Stock exchange and SEBI
   • Marketing Management
     • Marketing mix and product
     • Pricing, place and promotion
     • Branding, labelling and packaging
3. 3

   Consumer Protection and Business Environment

   3 topics

   • Consumer Protection
     • Consumer rights and responsibilities
     • Consumer Protection Act and redressal
   • Business Environment
     • Dimensions of business environment
     • Economic reforms and liberalisation
   • Entrepreneurship Development
     • Concept and characteristics of entrepreneurship
     • Process of entrepreneurship development

Business Studies flashcards for CBSE Class 12 Board Exam

25 of 50 cards from the Business Studies deck — real questions with worked answers.

1. Define management.

   Management is the process of getting things done with the aim of achieving organisational goals effectively and efficiently.

2. Distinguish between 'effectiveness' and 'efficiency' in management.

   Effectiveness means completing the task and achieving the goal on time; efficiency means achieving the goal at minimum cost (optimum use of resources). Good management balances both.

3. What are the three basic features that show management is a goal-oriented, pervasive and continuous process?

   Management is goal-oriented (aims at achieving organisational objectives), pervasive (present in all organisations and at all levels), and continuous (an ongoing series of functions: planning, organising, staffing, directing, controlling).

4. State the three broad objectives of management.

   Organisational objectives (survival, profit, growth), social objectives (benefit to society, e.g. fair wages, eco-friendly methods), and personal/individual objectives (employees' financial and social needs).

5. Name the levels of management.

   Top level (CEO, board, MD), middle level (departmental/divisional heads), and lower/supervisory/operational level (foremen, supervisors).

6. List the five functions of management.

   Planning, Organising, Staffing, Directing, and Controlling.

7. Why is management called both a science and an art?

   It is a science because it has a systematised body of knowledge, principles based on experimentation, and universal applicability; it is an art because it requires personal skill, creativity and practice to apply that knowledge.

8. What is the main feature that makes management a profession, and which feature does it lack?

   Like a profession it has a body of knowledge, restricted entry (degrees) and ethical codes; but it is not a full profession because there is no compulsory membership of a professional body and no legal restriction on entry.

9. Define coordination and state why it is called the 'essence of management'.

   Coordination is the orderly synchronisation/integration of group efforts to achieve unity of action. It is the essence of management because it is inherent in and runs through all functions of management at every level.

10. List four features of coordination.

    It integrates group efforts, ensures unity of action, is a continuous process, is a pervasive function, and is a deliberate (planned) function.

11. Who is regarded as the 'Father of General Management' and who is the 'Father of Scientific Management'?

    Henri Fayol is the Father of General Management; F.W. Taylor is the Father of Scientific Management.

12. What is the difference between a management principle and a management technique?

    A principle is a general guideline for decision-making and behaviour (the broad rule), whereas a technique is a specific procedure or method used to accomplish a task.

13. List four key features (nature) of principles of management.

    They are universal in application, formed by practice and experimentation, flexible, mainly behavioural (influence human behaviour), cause-and-effect relationships, and contingent (depend on the situation).

14. State Fayol's principle of 'Division of Work'.

    Work should be divided into small specialised tasks assigned to individuals so that specialisation increases efficiency, accuracy and speed.

15. What does Fayol's principle of 'Unity of Command' state?

    Each employee should receive orders from and be responsible to only one superior, to avoid confusion and conflicting instructions.

16. Differentiate Fayol's 'Unity of Command' from 'Unity of Direction'.

    Unity of Command: one subordinate, one boss. Unity of Direction: one head and one plan for a group of activities having the same objective. Command concerns an individual; direction concerns the organisation's activities.

17. State Fayol's principles of 'Authority and Responsibility' and the related 'Scalar Chain'.

    Authority and Responsibility: there must be a balance between authority (right to give orders) and responsibility; both should go together. Scalar Chain: a formal line of authority from top to bottom that should be followed in communication, with a 'gang plank' allowed for emergency cross-communication.

18. Name Taylor's four principles of scientific management.

    1) Science, not rule of thumb; 2) Harmony, not discord; 3) Cooperation, not individualism; 4) Development of each person to greatest efficiency and prosperity.

19. What is 'Functional Foremanship' proposed by Taylor, and how many foremen does it use?

    It is a technique extending division of work to the supervisory level by appointing 8 specialist foremen — 4 in the planning department (route clerk, instruction card clerk, time and cost clerk, disciplinarian) and 4 on the shop floor (speed boss, gang boss, repair boss, inspector).

20. Name the techniques of scientific management given by Taylor (besides functional foremanship).

    Standardisation and simplification of work, method study, motion study, time study, fatigue study, and differential piece wage system.

21. Define 'Method Study' and 'Motion Study' as Taylor's techniques.

    Method study finds the one best way (least cost) of doing a job; motion study studies the movements (productive, incidental, unproductive) of a worker and machine to eliminate unnecessary movements.

22. What is Taylor's 'Differential Piece Wage System'?

    A system that pays a higher rate per piece to efficient workers who meet/exceed the standard output and a lower rate to those below standard, to motivate higher productivity.

23. Define planning.

    Planning is deciding in advance what to do, how to do it, when to do it and who is to do it — it bridges the gap between where we are and where we want to be.

24. List the steps in the planning process (in order).

    1) Setting objectives, 2) Developing premises, 3) Identifying alternative courses of action, 4) Evaluating alternatives, 5) Selecting an alternative, 6) Implementing the plan, 7) Follow-up action.

25. State two major limitations of planning.

    Planning leads to rigidity, may not work in a dynamic environment, reduces creativity, involves huge costs, is time-consuming, and does not guarantee success.

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