Efficiency is a state or quality of being efficient. Efficiency signifies a peak level of performance that uses the least amount of inputs to achieve the highest amount of output. It minimizes the waste of resources such as physical materials, energy, and time while accomplishing the desired output. It can also be defined as the ability to produce something with a minimum amount of effort.

Equity refers to the quality of being fair and impartial. In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets.