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 have different meanings in the context of business. Beth's cake business may have high effectiveness but low efficiency.

Step-by-step explanation:

In the context of business, efficiency refers to the ability to produce goods or services using the least amount of resources possible. This can be achieved through streamlined processes, automation, and minimizing waste. A small, start-up company like Beth's that throws away cakes that aren't just right is not operating efficiently, as there is a waste of resources.

On the other hand, effectiveness refers to the ability to achieve desired outcomes or goals. It focuses on the quality and impact of the products or services delivered. In the case of Beth, she may have high effectiveness if her cakes that are sold are of excellent quality and highly regarded by customers.

Therefore, Beth is not operating efficiently, but she may be operating effectively if her cakes are in high demand and well-received by customers despite the waste involved.