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CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory : An entrepreneur is a person who starts an enterprise. The process of creation is called entrepreneurship. The entrepreneur is the actor and entrepreneurship is the act. The outcome of
the actor and the act, is called the enterprise. An enterprise is the business organization that is formed and which provides goods and services, creates jobs, contributes to national income, exports and contributes to the overall economic development.

The term „entrepreneur‟ is often used interchangeably with „entrepreneurship‟‟ but, conceptually, they are different, yet they are just like the two sides of a coin. Both the terms are co-related.

An entrepreneur is a person who bears the risks, unites various factors of production and carries out creative innovations. He/she is an individual or one of a group of individuals who try to create something new. He/she always attempting to bring about change in terms of factor proportions, which is known as innovation.

On the contrary, entrepreneurship is the set of activities performed by an entrepreneur. It is process of identifying opportunities in the market place and marshalling the resources required to pursue these opportunities for long term gains. It is the attempt to create value.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

The main need for entrepreneurship State in any country is for Economic Development. In capitalist and developed countries, private entrepreneurs play an important role in economic development. In socialist countries, the state (Government) is the entrepreneur. In under-developed countries, private entrepreneurship is not encouraged because of the degree of risk involved. The
government has to play a vital role in economic development. But in a developing country like India which follows a mixed economy, the role of both the government and the private entrepreneurs is equally important. The role of the private entrepreneurs has further increased because of the liberal economic policies followed by the Indian government since 1991.

Economic growth depends on the rate of innovation in the economic field, which in turn, depends on the number and quality of entrepreneurs in the society. Thus, entrepreneur is an agent of progress in the society. The reason for slow progress of our Indian economy during the first four decades of independence is that, the Indian entrepreneur has been shy. But as our economy has been progressing, we have seen an upsurge in the number of entrepreneurs emerging in all fields, but more needs to be done for increased economic growth in our country.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

Development of school curriculum is a dynamic process responsive to the society and reflecting the needs and aspiration of its learners. Fast changing society deserves changes in educational curriculum particularly to establish relevance to emerging socio-economic environment; to ensure equity of opportunity and participation and finally promoting concern for excellence. In this context the course on enterpreneurship aims at instilling and stimulating human urge for excellence by realizing individual potential for generating and putting to use the inputs, relevant to social prosperity and thereby ensure decent means of living for every individual


Acquiring Entrepreneurial Spirit and resourcefulness.

Familiarization with various uses of human resource for earning dignified means of living.

Understanding the concept and process of entrepreneurship-its contribution and role in the growth and development of individual and the nation.

Acquiring entrepreneurial quality, competency and motivation

Learning the process and skills of creation and management of entrepreneurial venture.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

Class XII (12th theory)                                                                                             Total Marks is 70

Unit I: Entrepreneurial Opportunities and Enterprise Creation – 20 Marks

  • Sensing Entrepreneurial Opportunities
  • Environment
  • Scanning Market Assessment
  • Identification of Entrepreneurial Opportunities
  • Selection of an Enterprise
  • Steps in setting up of an Enterprise

Unit II: Enterprise Planning and Resourcing – 20 Marks

  • Basic Qualities of a sound Enterprise
  • Feasibility Plan
  • Business Planning-Preparation of a Project Report
  • Its meaning, need, uses and objectives
  • Elements of a Project Report
  • Resource Assessment-Financial and Non-Financial
  • Mobilising Resources-Sources and Means of Funds, and Facilities.

Unit III: Enterprise Management  – 30 Marks

  • Concept of Enterprise Managment and Responsibility of an Entrepreneur.
  • General management: Basic Management functions.
  • Organising/Production of goods and services-quality, quantity and flow of inputs
  • Managing Market: Meaning, Functions of Marketing, Marketing Mix: Product, Price, Place, Promotion (advertising and sales promotion)
  • Managing Finance-Financial Management and Planning-Sources of Long Term and Short Term Finances
  • Determination of Cost, Income, Calculation of Profit/Loss.
  • Institution and Sources of Finance
  • Managing Growth and Sustenance-Affecting Change, growth sustaining activities, Modernisation, Expansion, Diversification and Substitution.
  • Entrepreneurial Discipline and Social Responsibility-Ecology, concern for workers and community, Adherance to Contract and Credits.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 


Introduction: The main objective of the course in Entrepreneurship is to generate in the students initiative, self-reliance and enthusiasm so as to empower them to become entrepreneurs both in spirit and performance. A number of skills such as observation, evaluation, communication, resource mobilization and management, risk assessment, team building etc. Are also to be developed in the students. Leadership qualities, sensitivity to business ethics and adherence to a positive value system are the core issues that the course highlights while presenting different concepts related to entrepreneurship.

Such a course should necessarily have a strong experiential component in the form of practical work. The objectives of the practical work are:

  • To introduce the students to the world of business by developing in them the core skills and competencies required for an entrepreneur.
  • To develop in the students qualities such as leadership, self-confidence, initiative, facing uncertainties, commitment, creativity, people and team building, integrity and reliability.
  • To enable the students to acquire the skills and knowledge needed for conducting surveys, collecting, recording and interpreting data and preparing simple estimates of demand for products and services.
  • To guide the students to prepare a Project Report.
  • To equip the students with knowledge and skills needed to plan and manage an enterprise through case studies conducted and recorded by the students in different fields such as resource assessment, market dynamics, finance management, cost determination, calculation of profit and loss etc.
  • To instill in the students important values and entrepreneurial discipline.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 


  • Project Report or Survey Report-10 Marks
  • Viva-Voce on PW/SR-05 Marks
  • Case Study-10 Marks Problem Solving-05 Marks
  • Total Marks-30
  • Project Report or Market Survey Report-10 Marks
  • Project Report: Preparation of a Project Report for an enterprise involving products/services Students may be provided adequate guidance to choose a project based on their interests and availability of information and authentic inputs in the locality. The specimen proforma of project report given in the textbook may be used for preparing the report. However, mechanical preparation of the report by filling in the information in the proforma should be discouraged. Further, as the students will be required to appear for a Viva-voce on the basis of their projects, sufficient care should be taken by the students to prepare the report after studying the various aspects involved thoroughly. In a nutshell, the project report should lead to viable enterprise.
  • Market Survey Report
  • Market research is the process and technique of finding out who your potential customers are and what they want. The survey may be on products and services already available in the market or students may also conduct surveys for new products and services. The report of the survey should be organised under the following broad headings:
  1. Objectives.
  2. Methods and tools (interviews, questionnaires etc.) to be used to collect information.
  3. Records of data and information.
  4. Analysis of data and information.
  5. Interpretation and conclusion.
  • For example, a survey may be conducted to find out the choice of households in toiletry soap
  • tooth paste etc. The data may be analysed to establish a pattern that may be useful to an entrepreneur.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

  • Guidelines for assessment of Project Report or Survey Report
  1. Presentation: Format, Clarity, Use of graphs, tables and other visuals, organisation, methodical recording of data and information and general neatness of execution. 5 marks
  2. Originality and Creativity-3 marks
  3. Authenticity of information and correctness of calculations and general feasibility of the project/sustainability of conclusion drawn in the survey. 2 marks
  • Viva Voce on the Project or Market Survey Report-5 Marks
  • The questions should establish that the report is the original work of the student and that the student has a reasonably clear understanding of the work carried out by him/her.
  • Entrepreneurial qualities such as leadership, self-belief, creativity, originality, initiative etc. May also be assessed by asking a variety of questions related to the report.
  • Case Study-10 marks
  • A case study is a focused research on an organisation, enterprise, practice, behaviour or person undertaken to highlight an aspect that the study attempts to examine. For instance, a case study may be conducted on the pollution control methods being employed by an industry. Or a successful industrialist may be chosen as a subject of a case study to analyze and understand the strategies that the industrialist adopted: To achieve success.
  • Ideally, a case study should be conducted on subjects with the objectives of bringing to the fore beliefs, practices, strategies, values etc. That have made them what they are. Such studies help us to understand the way in which great minds think and operate. We may also conduct case studies on failures; why a company collapsed, how a service lost its market etc. From both the types of case study, we learn lessons; how to do something or how not to do something. They also provide valuable insight into the processes involved in an enterprise.

    CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

  • A few topics are suggested for carrying out case studies:
  1. Drawing a profile of a successful entrepreneur.
  2. Studying a public sector undertaking and highlighting its sucess/failure, by analyzing the factors responsible.
  3. Studying a small scale unit in the locality to bring out the procedures and processes adopted by the unit to become a feasible business venture.
  4. A study of competition in business by choosing two or more rivals in the market and analyzing their strengths and weaknesses.
  5. Take the school itself for a case study and analyze any two aspects of the school plant for chalking out a plan of action: Infrastructure, academics, co-curricular activities etc.
  6. A case study on a thriving fast food shop/restaurant in your locality. What makes it so popular? A case study on the ways in which a business unit has mobilised its financial resources.
  7. A case study on the enterprise management techniques adopted by a business house. A case study on the marketing strategies of a successful consumer durable company.
  8. A case study on the financial management of a Public Limited Company. A case study on any Specialized Institution that supports and guides the establishment of a small scale unit.
  9. Studying the balance sheets of two big private companies to assess their trade and credit worthiness.
  10. Studying the inventory management of a large manufacturing industry to ascertain the processes involved for optimizing cost.
  11. Carrying out a case study on an established industrial house/company to find out the value system of the company and how it fulfils its social commitment/obligations.
  12. Carrying out a case study on an established industry to ascertain the processes followed to reduce/prevent pollution.
  13. Study on environment friendly companies and their contribution to preservation.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

  • Assessment of Case Studies
  1. Presentation: Format, accuracy, clarity, authenticity and general neatness-7 marks
  2. Analysis and Conclusions-3 marks
  • Problem Solving-5 Marks
  • In this session, the students will be required to solve a problem in the form of a written test. The examiner may choose any problem related to the units in class XII Text Book and set it for the class. The problem may be in the following areas:
  1. How to scan the environment to establish the feasibility of a project.
  2. Given certain figures showing the consumption pattern of a product, drawing conclusions that have a bearing on similar products.
  3. Carrying out market assessment for a given product/service to ascertain the feasibility factor. Assessment of Working Capital.
  4. Calculation of total cost of production.
  5. Calculation of break-even point.
  6. Determining location of a manufacturing unit.
  7. Problems in inventory control (calculation of the Economic Order Quantity and carrying out ABC analysis).
  8. Applying Pricing methods to determine the price of a product or service.
  9. Applying promotion mix to plan a sales campaign for a product or service.
  10. Working out a simple budget for a given task or job.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

  • Assessment of Answers
  • The examiner may prepare five problems which are solved by him/her before they are presented to the students. The student may choose anyone of the problems and solve it, showing the different steps/different reasons involved in the solution. If the problem does not involve actual calculations, it may not have anyone correct answer. So weightage should be given not only to the final answer but to the entire process of problem solving that the student has followed. Originality and innovative spirit should be rewarded. The students should not be penalized for spelling errors, grammatical mistakes etc. As long as the answer is coherent. Where definite formulas are involved, accuracy should be given due weightage.

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

S. No.Unit Periods Marks
1.Entrepreneurial Opportunities40 30
2.Plentrepreneurial Planning40
3.Enterprise Marketing4020
4.Enterprise Growth Strategies20
5.Business Arithmetic4020
6.Resource Mobilization20
 Project Work4030

CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory 

Example of how to answer a question paper can be seen here : Steps to answer question paper 

How to Allot CBSE Class 12 Commerce Marks : CBSE Class 12 Commerce Allotment of Marks

To download CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory syllabus check here CBSE Class 12 Commerce Entrepreneurship syllabus

 To download CBSE Class 12 Commerce Entrepreneurship Important Topics for Theory books Check here
CBSE Class 12 Commerce Entrepreneurship text bookDownload link
Enterpreneurship book 1Download link
Enterpreneurship book 2Download link
Enterpreneurship book 3Download link

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