ISC Class 12 Business Studies Syllabus 2026-27
CISCE has released the ISC Class 12 Business Studies syllabus for the 2026-27 academic session. Students and teachers should follow this syllabus for the ISC board exam.
The syllabus explains the course structure, unit topics, and exam pattern for Business Studies. It helps students understand what they must study for the final exam.
The ISC Business Studies syllabus also helps students plan their study schedule. Teachers use the syllabus to guide lessons and revision in class.
Oswal Publishers has updated its ISC Class 12 Books according to the latest CISCE paper pattern and subject curriculum.
Download the latest ISC Business Studies syllabus for Class 12 (2026-27).
ISC Business Studies Class 12 Latest Syllabus 2026-27
There will be two papers in the subject:
Paper I - Theory: 3 hours …… 80 marks
Paper II - Project Work …… 20 marks
Paper - I (Theory):
80 Marks
1. Human Resource Management
(i) Introduction to Human Resource Management.
Meaning and definition of Human Resource Management; Characteristics of Human Resource Management: people oriented, comprehensive function, staff function, pervasive, challenging, continuous, individual oriented, development oriented, action oriented, future oriented, interdisciplinary, art as well as science, young discipline; Importance of human resource management.
(ii) Job and Manpower planning.
Meaning, relevance and difference between the following: Job Analysis, Job Specification, Job Description, Job Enrichment and Job Enlargement, Manpower Estimation.
(iii) Staff Recruitment.
Meaning, definition and characteristics of staff recruitment; sources of recruitment: internal sources (promotion, transfer, exemployees, recommendation by employees); external sources (advertisements, campus recruitment, casual callers, gate hiring, employment exchanges, placement agencies, labour contractors). Differences between internal and external sources of recruitment, their merits and demerits; e-recruitment: concept, benefits and limitations; sources of e-recruitment: internet and intranet (their benefits and limitations).
(iv) Staff Selection.
Meaning and definition of staff selection; Selection procedures (preliminary screening, application blank, selection test, Group discussion, final interview, medical test, reference check, final approval, placement; brief explanation and importance of each step of the selection procedure); distinction between recruitment and selection.
(v) Staff Training.
Meaning and definition of training; distinction between training, education and development; types of training (induction, job, remedial, safety, promotional, refresher- brief explanation of each.); methods of training: on the job and off the job (vestibule, apprenticeship, internship, classroom); Distinction between on the job and off the job training. Hindrances to training: brief explanation. Benefits of training to employer and employees.
(vi) Staff Morale.
Meaning, definition and characteristics of staff morale; Morale Productivity Matrix (brief explanation of the four situations); factors influencing morale (morale depressants and stimulants: an understanding of how the same factor may lower or boost morale); methods of raising morale; indicators of low and high morale; advantages of high morale; disadvantages of low morale.
(vii) Staff Motivation.
Meaning, definition and characteristics of staff motivation; difference between motivation and morale; importance of staff motivation to the employer and the employee ; factors influencing motivation: monetary and non-monetary incentives; differences between monetary and non-monetary incentives; Maslow’s theory of the Hierarchy of Human Needs (explanation of the theory with the help of the pyramid, assumptions and criticism of the theory); Herzberg’s Two-factor Theory (Motivation and Hygiene Factors).
(viii) Staff Remuneration.
Meaning and definition of Staff remuneration, Methods of wage payment – Time Rate and Piece Rate System (An explanation of the two systems along with their merits, demerits and suitability, differences between the two); Pay Slip and Payroll - Meaning, Differences, Components, Specimens of both. Various staff benefits: Employee Provident Fund, National Pension System, Group Insurance (medical and life), encashment of leave, gratuity, (basic understanding only). Types of leaves (casual, medical/sick, earned / privilege, maternity/ paternity, sabbatical/ study, leave without pay: basic understanding only)
(ix) Staff Leadership.
Meaning and definition of staff leadership; Distinction between Leadership and Management; Leadership styles: Autocratic, Democratic, Laissez-Faire (brief explanation, advantages, disadvantages and comparison between each style); Leadership continuum (brief description); Situational leadership (brief description); Blake & Mouton Managerial Grid (brief explanation).
(x) Staff Appraisal.
Meaning and definition of Performance Appraisal and Potential Appraisal; Distinction between the two; Objectives and importance of Performance Appraisal, Methods of Performance Appraisal - merit grading, appraisal by results, appraisal by superior staff: self-appraisal; 360° appraisal (brief explanation of each method and their respective advantages and disadvantages).
(xi) Staff Promotion and Transfer.
Staff Promotion - Meaning, definition, benefits and limitations of promotion; Open and Closed policy of promotion (meaning and differences); a brief understanding of the concept of Dry promotion and upgrading and distinction between the two; requirements of a sound promotion policy; Basis of promotion: seniority, merit, seniority-cum-merit (brief explanation of each and the advantages, disadvantages, comparison between seniority basis and merit basis.)
Staff Transfer: Meaning, definition and need for transfer; Types of transfers: replacement, versatility, remedial, production (meaning and relevance of each type).
(xii) Staff Separation.
Meaning of Staff separation; means of staff separation: Retirement (Compulsory and Voluntary), Lay off, Retrenchment, Resignation, Suspension (Meaning and distinction only), Dismissal: grounds for dismissal, procedure for staff dismissal.
Exit Interview-Meaning and importance.
(xiii) Emerging trends in Human Resources.
Flexible Hours, Permanent part time, Work from home, Retainership, Virtual teams, Self-managing teams (SMTs) - only meaning of the above terms.
2. Business Communication and Correspondence
(i) Business Communication
Meaning and definition of communication; importance of communication in business, elements of the Communication Process, Methods of communication: Oral, Written, Gestural, Visual (Meaning, advantages and disadvantages of all these methods), Difference between oral and written communication, Types of communication: On the basis of area of operation (Internal and External), on the basis of relationship (Formal and Informal), on the basis of direction (Horizontal, Vertical-upwards and downwards, Diagonal), Meaning, Advantages and Disadvantages of each; distinction between - Internal and External; Formal and Informal; Horizontal and Vertical Communication; Barriers to Communication (Semantic, Physical and Mechanical, Organisational, SocioPsychological: meaning only, detailed explanation not required); overcoming the barriers to communication.
(ii) Business Correspondence
Need and functions of business correspondence.
Business Letters
Elements and contents of various business letters; types of letters: solicited and unsolicited letters of application for a job, along with drafting of biodata; Interview letter, Offer of Appointment, Letter of resignation, Letter of enquiry, Quotation letter, Order letter, Complaint letter, Reply to Complaint letter).
NOTE: Candidates should be able to draft all of the above types of letters, using the appropriate format.
Reports
Meaning and definition of Reports; types of reports: statutory, non- statutory, private, public, informational, interpretative, routine/periodic, special; brief explanation of each type of report; differences between statutory and non-statutory, private and public, informational and interpretative, routine/periodic and special report. Format of report (report writing not required).
(iii) Current trends in Business Communication: e-mail and video conferencing.
Meaning and uses of e-mail and video conferencing.
3. Business Size and Finance
(i) Various business entities.
Meaning, definition and distinction between sole proprietorship, partnership, private limited company and public limited company.
(ii) Sources of business finance
A basic understanding of the following : Equity and preference shares, debentures and bonds, retained profits, public deposits, loans, trade credit, discounting of bills of exchange, global depository receipt, Angel investors, venture capitalists, crowd funding, peer to peer funding, factoring.
4. Globalisation and recent trends in Business
(i) Globalisation.
Meaning, nature, opportunities and threats of globalization for business; brief understanding of how globalization has been instrumental in transforming the manner in which Business is conducted.
(ii) e-Business.
Meaning, nature and importance of e- business to the buyer and to the seller.
(iii) Outsourcing.
Concept of outsourcing; Parties involved – the outsourcer, the outsourced and the service provider – the respective advantages and disadvantages of each of the above.
(iv) Types of Outsourcing.
Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), and Business Legal Process Outsourcing (LPO).
Basic understanding of the above.
(v) Online means of conducting business.
Business to Consumer (B2C), Consumer to Consumer (C2C), Business to Business (B2B), Intra Business (Intra B) and, Business to Government (B2G), Government to Business (G2B).
Basic understanding of the above with a few examples.
5. Business Regulators and Intermediaries
(i) Regulators and Intermediaries.
Meaning of the terms Regulators and Intermediaries.
(ii) Role of Regulators and Intermediaries.
(a) Reserve Bank of India (RBI): Indian banks, foreign banks, Non-Banking Financial Companies (NBFC).
(b) Securities and Exchange Board of India (SEBI): stock exchanges, stock brokers, merchant bankers, depositories, mutual funds and credit rating agencies.
(c) Insurance Regulatory and Development Authority of India (IRDA): insurance companies, insurance agents and insurance brokers.
(d) Food Safety and Standards Authority of India (FSSAI): food processors, food packers.
(e) Bureau of Indian Standards (BIS): ISI mark given to industrial goods, consumer electrical goods, steel manufacturers.
Only a basic understanding of the roles of the above regulators and intermediaries.
