CBSE Class 12 Business Studies Notes

Business Studies is a study of how to control and manage an organization effectively and efficiently. After providing the basic knowledge about Business Studies in Class 11 Notes, GeeksforGeeks has designed Notes for Class 12 Business Studies according to the CBSE Syllabus. The mentioned below Chapterwise quick links of Class 12 Business Studies provide detailed knowledge about the subject and the related topics. The notes contain 12 chapters covering every important topic, like Functions of Management, Principles of Management, Marketing, Stock Exchange, Training, Recruiting, Planning, and many more. 

PART – A

Chapter 1: Nature and Significance of Management

Management is important for every organization, irrespective of its nature, size, and other factors. Therefore, it is crucial to understand the concept of management, its nature, and its functions. The GeeksforGeeks Notes of Class 12th Business Studies covers detailed information required to know about management or business management. The notes of the first chapter, ‘Nature and Significance of Management’ provided with the quick links given below, include important topics like, Effectiveness, Efficiency, Coordination, Planning, Controlling, Management as a Science, and many more. 

• What is Management? Concept, Characteristics, Objectives, Importance and Functions
• Difference between Effectiveness and Efficiency
• Nature of Management as a Science, Art and Profession 
• Levels of Management
• Functions of Management- Planning, Organising, Staffing, Directing and Controlling
• Coordination – The Essence of Management | Concept, Features and Importance
• Difference between Coordination and Cooperation

Chapter 2: Principles of Management

To attain better results through management, an organization has to follow certain principles of management. The notes of the second chapter, ‘Principles of Management’, cover detailed information on different principles of management required for better functioning of an organization. The notes include Nature and Significance of Management Principles, Fayol’s Principle of Management, Taylor’s Scientific Management, Techniques of Scientific Management, and a Comparison between Taylor’s and Fayol’s Principles. 

• Nature and Significance of Principles of Management
• 14 Principles of Management by Henri Fayol
• Difference between Unity of Command and Unity of Direction
• Principles of Scientific Management
• Techniques of Scientific Management
• Difference between Time Study and Motion Study
• Difference between Fayol and Taylor Theories of Management

Chapter 3: Business Environment

Business Environment is the surrounding of an organization that affects its decisions and performance during its existence. It is essential to understand the surroundings of an organization for a better decision-making process and results. The notes of the third chapter of Class 12 Business Studies Notes involve important topics, like Features, Importance, Dimensions of business environment, Demonetization, and many more in detail. 

• Features and Importance of Business Environment
• Dimensions of Business Environment
• Economic Environment in India
• New Industrial Policy and its impact on the Business
• Concept and Features of Demonetization

Chapter 4: Planning

Planning means deciding in advance regarding the works of an organization. Planning is the first function of management and is crucial to a business. The fourth chapter, ‘Planning’ of Class 12 Business Studies, covers everything required to know about planning as a function of management. The notes of this chapter include Features, Importance, and Limitations of Planning, Process of Planning, and Different Types of Plans in detail and easy-to-understand language.  

• Features, Importance and Limitations of Planning
• Planning Process: Concept and Steps
• Types of Plans: Standing Plan and Single-use Plan
• Difference between Standing Plans and Single-Use Plans
• Difference between Policies and Objectives
• Difference between Policies and Strategy
• Difference between Policies and Procedures
• Difference between Procedures and Methods
• Difference between Procedures and Rules
• Difference between Policies and Rules
• Difference between Rules and Methods

Chapter 5: Organising

The second function of management is Organising. In other words, it means organising people and their jobs together. The fifth chapter, ‘Organising’ of Class 12 Business Studies, covers everything to know about organising as a function of management. The notes of this chapter covered in the given below quick links consist of Organising Process, Organisation Structure, Formal and Informal Organisation, Delegation, Centralisation, and Decentralisation in detail. 

• Organising- Meaning, Importance and Process
• Types of Organisation Structure
• Difference between Functional Structure and Divisional Structure
• Formal and Informal Organisation
• Difference between Formal and Informal Organisation
• Elements and Importance of Delegation
• Difference between Authority, Responsibility and Accountability
• Centralization and Decentralization
• Difference between Centralisation and Decentralisation
• Difference between Delegation and Decentralisation

Chapter 6: Staffing

Every organization requires human force to run their business for which they need the Staffing function of management. Staffing means recruiting, selecting, and training individuals in an organization for the individuals’ and organization’s benefit. The sixth chapter of Class 12 Business Studies is Staffing, and its notes provided with the quick links given below cover important topics, like Staffing Process, Selection Process, Training Methods, etc. 

• Features and Importance of Staffing
• Staffing and Human Resource Management
• Staffing Process
• Sources of Recruitment (Internal and External: Meaning, Merits and Demerits)
• Difference between Internal Recruitment and External Recruitment
• Steps in Selection Process
• Difference between Recruitment and Selection
• Importance of Training and Development to Organisation and Employees
• Methods of Training: On-the-Job Methods and Off-the-Job Methods
• Difference between On-the-Job Training Methods and Off-the-Job Training Methods
• Difference between Training and Development
• Difference between Training, Development and Education

Chapter 7: Directing

Directing is the fourth function of management and is crucial to every organization as it cannot attain the pre-determined goals if the human resource is not directed towards the organizational goals properly. The seventh chapter of Class 12 Business Studies, ‘Directing’, covers everything required to know about directing, leadership, supervision, and communication. The notes of this chapter include important topics, like Principles of Directing, Qualities of a Good Leader, Barriers to Communication, Communication Process, and many more. 

• Directing: Meaning, Characteristics and Importance
• Principles and Elements of Directing
• Importance of Supervision
• Features and Importance of Motivation
• Process of Motivation
• Maslow’s Hierarchy of Needs Theory
• Financial and Non-Financial Incentives
• Difference between Financial and Non-financial Incentives 
• Features and Importance of Leadership
• Types of Leadership Styles
• 10 Qualities of a Good Leader
• Difference between a Manager and a Leader
• Nature and Importance of Communication
• Elements of Communication Process
• Communication Channels | Formal and Informal
• Formal Communication: Meaning, Types, Networks, Merits and Demerits
• Informal Communication: Meaning, Networks, Merits and Demerits
• Barriers to Effective Communication
• Measures to improve Communication Effectiveness

Chapter 8: Controlling

The last function of management is controlling. A business can achieve success only when it knows how to detect its performance and control it. The last chapter of Class 12 Business Studies, Part-A ‘Controlling’, covers important topics, like Limitations of Controlling, Process of Controlling, Techniques of Managerial Control, and many more. 

• Controlling: Nature, Importance, and Limitations
• Relationship between Planning and Controlling
• Process of Controlling

PART – B

Chapter 9: Financial Management

Every organization requires finance to run its business and achieve organizational objectives. A good amount of finance can only be helpful to a business only when it is managed properly, leading to the ninth chapter of Class 12 Business Studies ‘Financial Management’. The notes of this chapter provided through the below-mentioned quick links cover important topics, like Financial Decisions, Capital Structure, Working Capital, Business Finance, and many more. 

• Role and Objectives of Financial Management
• Kinds of Financial Decisions
• Investment Decision: Meaning and Factors affecting Investment Decision
• Financing Decision: Meaning and Factors affecting Financing Decision
• Dividend Decision: Meaning and Factors affecting Dividend Decision
• Financial Planning: Objectives and Importance
• What is Capital Structure
• Factors affecting the choice of Capital Structure
• What is Fixed Capital and Working Capital?
• Fixed Capital: Meaning, Importance and Factors Affecting Requirement of Fixed Capital 
• Working Capital: Meaning, Types, Operating Cycle and Factors Affecting the Working Capital

Chapter 10: Financial Markets

There are two main sectors in an economy, households (the savers) and business firms (the investors). Financial Markets serve as a link between them and help them connect with each other to maintain a flow of funds in the economy. The tenth chapter of Class 12 Business Studies, ‘Financial Markets’ talks about Financial Markets and Stock Exchanges in detail. The notes provided through the below-mentioned quick links consist of important topics, like Primary Market, Secondary Market, Dematerialisation, NSE, BSE, SEBI, and many more. 

• Financial Market: Meaning, Functions, and Classification
• Instruments of Money Market
• What is Capital Market?
• Difference between Money Market and Capital Market
• What are the different Methods of Floatation of Securities in Primary Market?
• Difference between Primary Market and Secondary Market
• What is Stock Exchange?
• Trading Procedure on a Stock Exchange
• 12 Common Terms in Stock Exchange
• Depository System: Meaning, Services and Constituents
• Dematerialisation of Securities (Demat Account): Benefits and Working
• What is National Stock Exchange of India (NSEI)?
• What is Over the Counter Exchange of India (OTCEI)?
• Difference between NSEI and OTCEI
• Securities and Exchange Board of India (SEBI): Objectives and Functions

Chapter 11: Marketing

A business does not run itself just through the production of goods and services, it needs to perform marketing of the business too. Marketing means interacting with people, providing them information about the business and its product or service, and convincing them to purchase those goods or services. The eleventh chapter of Class 12 Business Studies, ‘Marketing’ covers everything required to know about marketing and its related concepts. The notes of this chapter consist of important topics, like Marketing Management Philosophies, Marketing Mix, Promotion, Advertising, Sales Promotion, Public Relation, and many more. 

• Marketing: Features and Functions
• Difference between Marketing and Selling
• Marketing Management Philosophies
• What is Marketing Mix?
• What is Product Mix?
• Classification of Products
• Difference between Convenience Products, Shopping Products and Speciality Products
• Difference between Consumer Products and Industrial Products
• What is Branding?
• Packaging: Levels, Importance and Functions
• What is Labelling?
• Price Mix: Meaning and Factors Affecting Price Determination
• What is Place/Physical Distribution Mix?
• Types of Distribution Channels
• Factors Determining Choice of Channels of Distribution
• Components of Physical Distribution
• What is Promotion Mix?
• Advertising: Features, Merits and Demerits
• Objections to Advertising
• Personal Selling: Features, Merits and Role
• Qualities of a Good Salesman
• Difference between Advertising and Personal Selling
• Sales Promotion: Merits, Demerits and Activities/ Techniques
• What is Public Relations?

Chapter 12: Consumer Protection

A consumer is said to be the king of a free market economy. Therefore, it is crucial to protect the consumer from different unfair trade practices. Consumer Protection means educating the consumer about their rights and responsibilities and helping them get redressal for any unfair trade practice. The last chapter of Class 12th Business Studies Part-B, ‘Consumer Protection’ covers detailed information regarding Consumer, Consumer Protection, Consumer Protection Act and Redressal Agencies under the Act. 

• Consumer Protection: Meaning, Importance and Means
• Consumer Rights and Responsibilities
• Who is a Consumer?
• Consumer Protection Act 1986 v/s Consumer Protection Act 2019
• Redressal Agencies under the Consumer Protection Act, 2019
• Remedies available to Consumers under Consumer Protection Act 2019