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 : Beth bakes beautiful wedding cakes. The cakes are very expensive because, for every cake sold, she throws away three cakes that aren't just right. Beth is:

Answer 1

Efficiency and effectiveness are two important concepts in business' success. Start-up companies should aim to operate efficiently and effectively to increase their chances of success.

Step-by-step explanation:

Efficiency and effectiveness are two important concepts in business. Efficiency refers to the ability of a company to produce goods or services with minimum waste, such as reducing costs or time. Effectiveness, on the other hand, is about achieving the desired outcomes or goals. In the example given, Beth's operation is efficient because she gets rid of imperfect cakes to maintain the quality of her products. However, it may not be effective in terms of profitability, as she incurs additional costs by throwing away cakes.

In the context of business, both efficiency and effectiveness are crucial. A company needs to operate efficiently to optimize its resources and minimize waste, while also being effective in achieving its goals and delivering value to its customers. Start-up companies, regardless of their size, should strive to operate efficiently and effectively to increase their chances of success.