SQL Server offers three recovery models: full recovery, simple recovery and bulk-logged recovery. The recovery models determine how much data loss is acceptable and determines whether and how transaction logs can be backed up.
Select Simple Recovery Model if:
* Your data is not critical.
* Losing all transactions since the last full or differential backup is not an issue.
* Data is derived from other data sources and is easily recreated.
* Data is static and does not change often.
Select Bulk-Logged Recovery Model if:
* Data is critical, but logging large data loads bogs down the system.
* Most bulk operations are done off hours and do not interfere
with normal transaction processing.
* You need to be able to recover to a point in time.
Select Full Recovery Model if:
* Data is critical and no data can be lost.
* You always need the ability to do a point-in-time recovery.
* Bulk-logged activities are intermixed with normal transaction processing.
* You are using replication and need the ability to resynchronize all
databases involved in replication to a specific point in time.
You can switch from any recovery model to another recovery model, but prior to or after the switch, you may need to issue additional transaction log or full backups to ensure you have a complete backup set.
ALTER DATABASE Pubs SET RECOVERY FULL
Reference : Pinal Dave (http://blog.SQLAuthority.com)