Part/unit weightage: 15 marks where the official CBSE structure groups this unit under the indicated section. Theory is 80 marks and project work is 20 marks. citeturn0search11

1. What You Need to Learn

Meaning and objectives; financial decisions; investment, financing and dividend decisions; financial planning; capital structure; fixed and working capital.

2. Core Concepts

Financial management aims to maximise shareholders’ wealth while making sound investment, financing and dividend decisions. Working capital supports day-to-day operations; fixed capital supports long-term assets.

3. Common Mistakes

Do not confuse investment decision with financing decision. Working-capital requirements depend on operating cycle, scale, growth and other factors.

4. Case-Based & Exam Practice

1. Identify the financial decision in a case.
2. Explain factors affecting capital structure and working capital.
3. Distinguish fixed and working capital..

5. Quick Revision Checklist

• Can you define the key terms in NCERT language?
• Can you identify the concept from a business case?
• Can you explain the reason, feature, advantage or limitation?
• Can you apply the concept to a new situation?

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