CBSE Class 12 Business Studies 2021 Outside Delhi set 1

Question : 1

Total: 60

SECTION-A

At times, a business may concentrate on producing goods with fewer resources but cannot achieve the targeted production. In such a case, the business is said to be :

Effective but not efficient
Efficient but not effective
Both effective and efficient
Neither effective nor efficient

Solution:

(b) Efficient but not effective
Effectiveness is the degree to which someone is successful in producing a desired result. Efficiency is the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In the above situation the company is focussing mainly on using less resources because of which the targeted result couldn't be achieved.

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