Question

As you continued your discussion with Maia and Bram, you explain that even small, start-up companies should operate both efficiently and effectively. Although these terms sound similar, each has a different and precise meaning. You walk through a few examples with Maia and Bram to ensure that they have a solid understanding of the concepts. For the following examples, select the word or phrase that best completes the sentence.

Example : Charles wants to run a marathon in less than 3 hours. He made a schedule that should allow him to spend the minimum amount of time training while still improving his speed and endurance. Charles is following his plan, but his running time is not improving. Charles is:

Answer 1

Efficiency and effectiveness are important for all companies, including small start-ups. Efficiency focuses on resource usage and cost reduction, while effectiveness focuses on goal achievement and customer satisfaction.

Step-by-step explanation:

Efficiency and effectiveness are two important concepts for any company, including small start-up companies.

Efficiency refers to how well a company uses its resources to produce goods or services. It focuses on minimizing waste and reducing costs. For example, a company that can produce more units of a product with the same amount of resources is considered more efficient.

Effectiveness refers to how well a company achieves its goals and objectives. It focuses on delivering value to customers and meeting their needs. For example, a company that consistently meets customer expectations and generates high customer satisfaction is considered more effective.