CBSE Syllabus Class 12 Business Studies

On July 5, 2021, CBSE had announced that the Syllabus for Class 12 Board Exams will be reduced as per a Term-based Examination System and on July 22, 2021, they finalised the reduced syllabus as well by providing updated PDFs.

CBSE Class 12 Syllabus has undergone drastic changes since the previous 2020-21 session. Due to the COVID-19 pandemic, the education system has been challenging for both teachers and students.

So, similar to the 30% reduction in the last session, CBSE decided to reduce the overall syllabus according to the Term-based Board Examination for the 2021-22 session again.

We, at Educart, were prompt about it and have updated the changes in all the subjects for you. Here, you can find:

  • freely-downloadable PDF links to the latest reduced Class 12 Business Studies Syllabus for 2021-22 academic session; and
  • simple analysis of all the deleted topics/ chapters for 2021-22 Term-based Board Exam.

With all this information in hand, both teachers and students will have a defined structure to begin the learning process on time and efficiently.


Class 12 Business Studies Reduced Syllabus for 2021-22 (Reduced)

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We have also provided the syllabus for the 2021-22 session that was previously restored so that you can compare the deleted and added topics.

Class 12 Business Studies Reduced Syllabus for 2021-22 (Restored Previously)

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Now, let us take a look at the syllabus for Term I and Term II Board Exams in detail and try to understand what changes have been made.


<red> Marked in red: <red> Topics <red> removed <red> for 2021-22

Term I

Units Unit Name Marks
Part A: Principles and Functions of Management
I Nature and Significance of Management 16
II Principles of Management
III Business Environment
IV Planning 14
V Organising
Part B: Business Finance and Marketing
XI Marketing Management 10
Project Work (Only One) 10
TOTAL 50

Part A - Principles and Functions of Management

Unit I: Nature and Significance of Management

Management - Concept, Objectives, and Importance

  • Understand the concept of management.
  • Explain the meaning of ‘Effectiveness and Efficiency.’
  • Discuss the objectives of management.
  • Describe the importance of management

Management as Science, Art and Profession

  • Examine the nature of management as a science, art and profession.

Levels of Management

  • Understand the role of top, middle and lower levels of management

Management Functions-planning, Organizing, Staffing, Directing and Controlling

  • Explain the functions of management

Coordination - Concept and Importance

  • Discuss the concept and characteristics of coordination
  • Explain the importance of coordination


Unit II: Principles of Management

Principles of Management - Concept and Significance

  • Understand the concept of principles of management.
  • Explain the significance of management principles.

Fayol’s Principles of Management

  • Discuss the principles of management developed by Fayol.

Taylor’s Scientific Management - Principles and Techniques

  • Explain the principles and techniques of ‘Scientific Management’.
  • <red> Compare the contributions of Fayol and Taylor.<red>


Unit III: Business Environment

Business Environment - Concept and Importance

  • Understand the concept of ‘Business Environment’.
  • Describe the importance of Business Environment

Dimensions of Business Environment Economic, Social, Technological, Political and Legal - Demonetization (Concept and Features)

  • Describe the various dimensions of ‘Business Environment’.
  • <red> Understand the concept of Demonetization <red>

<red> Impact of Government Policy Changes on Business with Special Reference to Liberalization, Privatization and Globalization in India <red>

  • <red> Examine the impact of government policy changes on business in India with reference to liberalisation, privatization and globalisation since 1991. <red>
  • <red> Discuss the managerial response to changes in the business environment. <red>


Unit IV: Planning

Concept, Importance and Limitations

  • Understand the concept of planning.
  • Describe the importance of planning.
  • Understand the limitations of planning.

Planning Process

  • Describe the steps in the process of planning.

<red> Single Use and Standing plans - Objectives, Strategy, Policy, Procedure, Method, Rule, Budget and Programme <red>

  • <red> Develop an understanding of single use and standing plans <red>
  • <red> Describe objectives, policies, strategy, procedure, method, rule, budget and programme as types of plans. <red>


Unit V: Organising

Concept and Importance

  • Understand the concept of organizing as a structure and as a process.
  • Explain the importance of organising.

Organising Process

  • Describe the steps in the process of organising

Structure of Organization - Functional and Divisional Concept. (Formal and Informal Organization - Concept)

  • Describe functional and divisional structures of organisation.
  • <red> Explain the advantages, disadvantages and suitability of functional and divisional structure. <red>
  • <red> Understand the concept of formal and informal organisation. <red>
  • <red> Discuss the advantages and disadvantages of formal and informal organisation. <red>

Delegation - Concept, Elements and Importance

  • Understand the concept of delegation.
  • Describe the elements of delegation.
  • Appreciate the importance of delegation.

Decentralization - Concept and Importance

  • Understand the concept of decentralisation.
  • Explain the importance of decentralisation.
  • Differentiate between delegation and decentralisation

Part B - Business Finance and Marketing 

Unit XI: Marketing

Marketing – Concept, Functions and Philosophies

  • Understand the concept of marketing.
  • <red> Explain the features of marketing. <red>
  • Discuss the functions of marketing.
  • Explain the marketing philosophies.

Marketing Mix – Concept and Elements

  • Understand the concept of marketing mix.
  • Describe the elements of the marketing mix.

Product - Branding, Labelling and Packaging – Concept

  • Understand the concept of product as an element of marketing mix.
  • Understand the concept of branding, labelling and packaging.

Price - Concept, Factors Determining Price

  • Understand the concept of price as an element of marketing mix.
  • Describe the factors determining price of a product.

Physical Distribution – Concept, <red> Components and Channels of Distribution <red>

  • Understand the concept of physical distribution.
  • <red> Explain the components of physical distribution. <red>
  • <red> Describe the various channels of distribution. <red>

Promotion – Concept and Elements; Advertising, Personal Selling, Sales Promotion and Public Relations

  • Understand the concept of promotion as an element of marketing mix.
  • Describe the elements of the promotion mix.
  • Understand the concept of advertising.
  • Understand the concept of sales promotion.
  • Discuss the concept of public relations.

Term II

Units Unit Name Marks
Part A: Principles and Functions of Management
VI Staffing 20
VII Directing
VIII Controlling
Part B: Business Finance and Marketing
IX Financial Management 15
X Financial Markets
XII Consumer Protection 05
Project Work 10
TOTAL 50

Part A - Principles and Functions of Management

Unit VI: Staffing

Concept and Importance of Staffing

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

<red> Staffing as a Part of Human Resource Management – Concept <red>

  • <red> Understand the specialized duties and activities performed by Human Resource Management <red>

Staffing Process

  • Describe the steps in the process of staffing

Recruitment process

  • Understand the meaning of recruitment.
  • Discuss the sources of recruitment. 
  • Explain the merits and demerits of internal and external sources of recruitment.

Selection - Process

  • Understand the meaning of selection.
  • Describe the steps involved in the process of selection.

Training and Development - Concept and Importance, Methods of Training - on the job and off the job - Vestibule Training, Apprenticeship Training and Internship Training

  • 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 VII: Directing

Concept and Importance

  • Describe the concept of directing.
  • Discuss the importance of directing

Elements of Directing

  • Describe the various elements of directing

Motivation - Concept, Maslow’s Hierarchy of Needs, Financial and Non-financial Incentives

  • Understand the concept of motivation.
  • Develop an understanding of Maslow’s Hierarchy of needs.
  • Discuss the various financial and non-financial incentives.

Leadership - Concept, Styles - Authoritative, Democratic and Laissez Faire

  • Understand the concept of leadership.
  • Discuss the various styles of leadership.

Communication - Concept, Formal and Informal Communication; <red> Barriers to Effective Communication, How to Overcome the Barriers <red>

  • Understand the concept of communication
  • <red> Understand the elements of the communication process. <red>
  • Discuss the concept of formal and informal communication.
  • <red> Discuss the various barriers to effective communication. <red>
  • <red> Suggest measures to overcome barriers to communication <red>

Unit VIII: Controlling

Controlling - Concept and Importance

  • Understand the concept of controlling.
  • Explain the importance of controlling.

<red> Relationship Between Planning and Controlling <red>

  • <red> Describe the relationship between planning and controlling <red>

Steps in Process of Controlling

  • Discuss the steps in the process of controlling.


Part B - Business Finance and Marketing

Unit IX: Financial Management

Concept, Role and Objectives of Financial Management

  • Understand the concept of financial management.
  • Explain the role of financial management in an organisation.
  • Discuss the objectives of financial management

Financial Decisions: Investment, Financing and Dividend - Meaning and Factors affecting Them

  • Discuss the three financial decisions and the factors affecting them.

Financial Planning - Concept and Importance

  • Describe the concept of financial planning and its objectives.
  • Explain the importance of financial planning.

Capital Structure – Concept and Factors Affecting Capital Structure

  • Understand the concept of capital structure.
  • Describe the factors determining the choice of an appropriate capital structure of a company.

Fixed and Working Capital - Concept and Factors Affecting their Requirements

  • Understand the concept of fixed and working capital.
  • Describe the factors determining the requirements of fixed and working capital.

Unit X: Financial Markets

Financial Markets: Concept, Functions and Types

  • Understand the concept of the financial market.
  • Explain the functions of the financial market.
  • Understand the capital market and money market as types of financial markets.

Money Market and its Instruments

  • Understand the concept of the money market.
  • Describe the various money market instruments.

Capital Market and its Types (primary and secondary), Methods of Floatation in the Primary Market

  • 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.

Stock Exchange - Functions and Trading Procedure

  • 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.

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

  • State the objectives of SEBI.
  • Explain the functions of SEBI.

Unit XII: Consumer Protection

Concept and Importance of Consumer Protection

  • Understand the concept of consumer protection.
  • Describe the importance of consumer protection.
  • Discuss the scope of Consumer Protection Act, 2019

The Consumer Protection Act, 2019: Meaning of Consumer Rights and Responsibilities of Consumers; Who can file a complaint?; Redressal Machinery; Remedies Available; Source: http://egazette.nic.in/WriteReadData/2019/210422.pdf

  • 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.

Consumer Awareness - Role of Consumer Organizations and Non-Governmental Organizations (NGOs)

  • Describe the role of consumer organizations and NGOs in protecting consumers’ interests.


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