12th HSC Secretarial Practice (S.P.) Important Short Notes, Brief Answers & Terms for Board Exam 2027 (16 Marks)

Are you looking to master the theoretical and concept-based questions for your upcoming Maharashtra State Board (MSBSHSE) 12th Standard HSC Secretarial Practice (S.P.) Board Exam 2027? In the new syllabus HSC S.P. activity sheet, short notes and brief conceptual questions are tested across two major sections carrying a combined 16 Marks: Question 2: Explain the Following Terms / Concepts (8 Marks) and Question 5: Answer in Brief (8 Marks). Based on a comprehensive analysis of the Balbharati Textbook (Chapters 1 to 12) and previous years' HSC Board Question Papers (2021–2026), we have curated the ultimate list of 99.99% Sure Short Notes, Brief Questions, and Key Terms.

16-Marks Blueprint Breakdown:
1. Question 2 (Explain the Terms / Concepts): Attempt any 4 out of 6 terms (2 Marks each = 08 Marks). Write 2 to 3 clear points or 4 to 5 lines for each term.
2. Question 5 (Answer in Brief / Short Notes): Attempt any 2 out of 3 questions (4 Marks each = 08 Marks). Write Meaning + 4 to 5 well-explained head points for each question.

Part 1: Top 12 Most Important "Answer in Brief / Short Notes" for 2027 (Q.5 - 8 Marks)

In Question 5, you only need to attempt 2 out of 3 questions (4 Marks each). Note that Chapters 6, 7, and 8 (Letter Writing) are never asked in Question 5. Mastering these Top 12 Golden Questions from the remaining chapters guarantees that you will easily find at least 2 familiar questions in your 2027 Board Paper:

State any four factors affecting Fixed Capital requirement (or Working Capital requirement). (Chapter 1 — 1 Question from Chapter 1 is asked almost every year!)
What is Corporate Finance? State the two decisions which are the basis of Corporate Finance (Financing & Investment Decision). (Chapter 1 — High-Probability Concept Note)
Write a short note on: Retained Earnings (Ploughing Back of Profits) OR Public Deposits / ADR & GDR. (Chapter 2 — Very Important Source of Finance Note)
Explain Employee Stock Option Scheme (ESOS) OR Bonus Shares / Rights Issue. (Chapter 3 — 5-Star Repeated Board Favourite!)
State the general principles / statutory provisions regarding Transfer of Shares (or Share Certificate). (Chapter 3 — Core Secretarial Rule Question)
Explain the statutory provisions for Issue of Debentures under the Companies Act, 2013 (or Debenture Trustees). (Chapter 4 — Top Question from Chapter 4)
What are the terms and conditions regarding Acceptance of Deposits (or Procedure for Accepting Deposits from Public)? (Chapter 5 — Guaranteed Representation from Deposits!)
Explain the advantages / importance of the Depository System to Investors and Companies. (Chapter 9 — Asked repeatedly in March & July Board Exams!)
Who are the constituents of the Depository System? Explain them briefly (Depository, DP, BO, Issuer). (Chapter 9 — Very Easy 4-Point Answer for 4 Marks!)
State the legal provisions regarding Declaration of Dividend (or Payment of Dividend / IEPF). (Chapter 10 — High-Scoring Statutory Question)
State any four functions of Financial Market (or Explain any four Instruments of Money Market — T-Bills, CP, CD, Call Money). (Chapter 11 — 5-Star Repeated Question!)
State any four functions of Stock Exchange (or Explain the functions of SEBI). (Chapter 12 — 1 Question Almost 100% Guaranteed from Chapter 12!)

Part 2: Top 25 Most Important "Explain the Terms / Concepts" (Q.2 - 8 Marks)

In Question 2, you must explain any 4 out of 6 terms (2 Marks each = 8 Marks). To help you revise in just 10 minutes, here are the Top 25 Most Repeated Textbook Terms along with their exact 2-Mark Key Points:

Ch. No.	Important Term (Q.2 - 2 Marks)	Key Exam Points to Write for Full 2/2 Marks
Ch. 1	1. Fixed Capital 2. Working Capital 3. Capital Structure 4. Financing Decision 5. Investment Decision	• Fixed Capital: Capital invested in long-term physical fixed assets (land, building, machinery) that stay permanently in business. • Working Capital: Capital required for day-to-day business operations; excess of Current Assets over Current Liabilities (or sum of current assets). • Capital Structure: Mix-up of various sources of long-term funds (Owned Capital + Borrowed Capital) in desired proportion. • Financing Decision: Decision regarding choosing the right sources of raising funds (debt vs. equity ratio). • Investment Decision: Decision regarding systematic deployment of funds into fixed and current assets (Capital Budgeting).
Ch. 2	6. Owned Capital 7. Borrowed Capital 8. Retained Earnings 9. Overdraft / Cash Credit 10. Trade Credit	• Owned Capital: Permanent capital contributed by shareholders (Equity + Preference) and internal accruals (Retained Earnings). • Borrowed Capital: Loan capital raised from external creditors through Debentures, Bonds, Public Deposits, and Bank Loans. • Retained Earnings: Process of retaining a part of net profit year after year and reinvesting it in business (Ploughing back of profit). • Overdraft: Facility granted by a bank to Current Account holders to withdraw more than their credit balance up to a sanctioned limit. • Trade Credit: Short-term credit extended by one manufacturer/trader to another when goods are bought on credit without immediate cash payment.
Ch. 3	11. Minimum Subscription 12. Bonus Shares 13. Rights Issue / ESOS 14. Calls on Shares 15. Share Certificate	• Minimum Subscription: Minimum amount of issue size (90% as per SEBI) that must be subscribed within 30 days of prospectus issue. • Bonus Shares: Fully paid-up shares issued free of cost to existing equity shareholders out of accumulated profits/reserves. • ESOS: Scheme under which company offers permanent employees the option to buy its future equity shares at a pre-determined price. • Calls on Shares: Demand made by the company on shareholders to pay part or full unpaid balance of face value after allotment. • Share Certificate: Registered document of title to shares issued by a company under its common seal (Form SH-1).
Ch. 4 & 5	16. Debenture Trustee 17. Debenture Trust Deed 18. Charge on Assets 19. Deposit Receipt	• Debenture Trustee: Institution appointed by a company (when issuing debentures to >500 persons) to protect the interest of debenture holders. • Debenture Trust Deed: Legal contract executed between the company and Debenture Trustees defining rights of debenture holders and company's duties. • Charge on Assets: Creating a security interest (Fixed Charge on specific asset or Floating Charge on fluctuating assets) in favour of lenders. • Deposit Receipt: Acknowledgement of debt issued by a company to a depositor within 21 days of receiving money/realization of cheque.
Ch. 9 & 10	20. Depository Participant (DP) 21. Fungibility / ISIN 22. Unpaid Dividend Account 23. IEPF	• Depository Participant (DP): Agent of the Depository (registered with SEBI) acting as an intermediary link between Depository and Investor (BO). • Fungibility: State where financial assets held in electronic (Demat) form are interchangeable and carry no distinctive or certificate numbers. • ISIN: 12-digit alphanumeric code (International Securities Identification Number) that uniquely identifies a security. • IEPF: Investor Education and Protection Fund established by Central Govt; unpaid dividend remaining unclaimed for 7 years is transferred here.
Ch. 11 & 12	24. Bull & Bear / Stag / Lame Duck 25. Treasury Bills / Call Money	• Bull (Tejiwala): Optimistic speculator who buys securities expecting a rise in their market prices in the future. • Bear (Mandiwala): Pessimistic speculator who sells securities expecting a fall in their market prices in the future. • Stag (Premium Hunter): Speculator who applies for shares in the Primary Market (IPO) to sell them at a premium upon listing. • Lame Duck: A Bear speculator whose expectations go wrong and who struggles to meet commitments due to rising prices.

Chapter-Wise Complete Question Bank for Q.5 (Answer in Brief / Short Notes)

Here is the complete chapter-wise list of important 4-mark brief questions across the syllabus:

Chapter 1: Introduction to Corporate Finance

Explain the importance of Corporate Finance. [★★★★★]
State the factors affecting Fixed Capital requirement. [★★★★★]
State the factors affecting Working Capital requirement. [★★★★★]
What is Capital Structure? What are the components of Capital Structure? [★★★★☆]

Chapter 2: Sources of Corporate Finance

What is Retained Earnings (Ploughing Back of Profits)? Explain its determinants. [★★★★★]
Write a short note on Public Deposits as a source of finance. [★★★★☆]
Write a short note on American Depository Receipt (ADR) and Global Depository Receipt (GDR). [★★★★☆]
Explain Trade Credit and Bank Overdraft / Cash Credit. [★★★☆☆]

Chapter 3: Issue of Shares

Explain Employee Stock Option Scheme (ESOS). [★★★★★]
Write a short note on Bonus Shares and its provisions. [★★★★★]
State the provisions regarding Rights Issue of Shares. [★★★★☆]
What is a Share Certificate? What are its contents? [★★★★☆]
State the legal rules regarding Calls on Shares. [★★★★☆]

Chapter 4 & Chapter 5: Issue of Debentures & Deposits

Explain the statutory provisions for Issue of Debentures under the Companies Act, 2013. [★★★★★]
Explain the procedure for Issue of Debentures. [★★★★☆]
Explain the terms and conditions for Acceptance of Deposits by a company. [★★★★★]
Explain the procedure for Accepting Deposits from the Public (or from Members). [★★★★☆]

Chapter 9 & Chapter 10: Depository System & Dividend / Interest

Explain the advantages / importance of the Depository System to Investors and Issuing Companies. [★★★★★]
Explain the four constituents of the Depository System (Depository, DP, BO, Issuer Company). [★★★★★]
Explain the legal provisions for Declaration of Dividend (Sources of Dividend). [★★★★★]
Explain the legal provisions for Payment of Dividend (and Unpaid/Unclaimed Dividend). [★★★★★]

Chapter 11 & Chapter 12: Financial Market & Stock Exchange

Explain the functions of Financial Market. [★★★★★]
Explain any four Instruments of Money Market (T-Bills, Commercial Paper, Certificate of Deposit, Call/Notice Money). [★★★★★]
State and explain the functions of Stock Exchange. [★★★★★]
State and explain the functions of SEBI (Securities and Exchange Board of India). [★★★★★]

Official Board Examiner Marking Scheme for Q.2 & Q.5

Question Number	Marks Per Question	How to Structure Your Answer for Full Marks
Question 2: Explain the Terms / Concepts (Attempt any 4 out of 6)	02 Marks Each (Total = 08 Marks)	Write 3 to 4 crisp bullet points: (1) Exact Meaning, (2) Governing Section / Nature, and (3) One Key Feature or Example. Never write just a single sentence!
Question 5: Answer in Brief (Attempt any 2 out of 3)	04 Marks Each (Total = 08 Marks)	Start with a 2-line Meaning / Introduction, followed by 4 to 5 clearly numbered Head Points with a 2-to-3 line explanation under each heading (1 Mark per point).