Skip to main content
Super TutorResources
Chapter 2 of 11
QuestionsNotesFlashcardsSummaryFormulasQuizConceptsSyllabusPlan
Revision Notes

Financial Management

CBSE · Class 12 · Business Studies

Quick revision notes for Financial Management — CBSE Class 12 Business Studies. Key concepts, formulas, and definitions for last-minute revision.

45 questions68 flashcards5 concepts

Interactive on Super Tutor

Studying Financial Management? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for revision notes and more.

Try Super Tutor — Free

1,000+ Class 12 students started this chapter today

An infographic illustrating the meaning and various uses of business finance, showing how it's needed for establishment, running, modernization, expansion, and diversification, and for both tangible a
Super Tutor

This is just one of 13+ visuals inside Super Tutor's Financial Management chapter

Explore the full set

Key Topics to Revise

1

1. Meaning of Business Finance and Financial Management

  • Money required for carrying out business activities is called business finance.
  • Business finance is needed to start, run, modernise, expand, and diversify a business.
  • Finance is required for tangible assets like machinery, factories, buildings, and offices, and for intangible assets like trademarks, patents, and technical expertise.
2

2. Objectives and Financial Decisions

  • The primary aim of financial management is to maximise shareholders' wealth, which is called the wealth-maximisation concept.
  • The market price of equity shares rises when financial decisions add value.
  • Financial management involves three major decisions: investment decision, financing decision, and dividend decision.
3

3. Financial Planning

  • Financial planning is the preparation of a financial blueprint of an organisation’s future operations.
  • Its purpose is to ensure enough funds are available at the right time.
  • Financial planning is not equivalent to, or a substitute for, financial management.
4

4. Capital Structure and Financial Leverage

  • Capital structure refers to the mix between owners and borrowed funds.
  • Owners' funds include equity share capital, preference share capital, reserves and surpluses.
  • Borrowed funds include loans, debentures, and public deposits.

Get complete notes with diagrams and examples

Full Notes

Key Concepts

Money required for carrying out businessFinancial Management is concerned with optimalThe primary aim of financial managementFinancial management mainly involves three decisionsInvestment decision means choosing how funds

Frequently Asked Questions

What are the important topics in Financial Management for CBSE Class 12 Business Studies?
Financial Management covers several key topics that are frequently asked in CBSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Financial Management — CBSE Class 12 Business Studies?
Understand the core concepts first, then work through the 45 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Financial Management

All 11 chapters — CBSE Class 12 Business Studies Revision Notes

For serious students

Get the full Financial Management chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for CBSE Class 12 Business Studies.

Try Super Tutor Free
Try the full chapter — Free