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Financial Management

CBSE · Class 12 · Business Studies

Complete topic list for Financial Management in CBSE Class 12 Business Studies. Key concepts, sub-topics, and what to focus on for board exams.

45 questions68 flashcards5 concepts

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4 Topics · CBSE Class 12 Business Studies

Topics in Financial Management

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.

Key Concepts

Central concept: Financial Management

Business FinanceFinancial ManagementFinancial DecisionsFinancial PlanningCapital StructureFixed CapitalWorking CapitalDividend Decision

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.

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All 11 chapters — CBSE Class 12 Business Studies Syllabus

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