Question:
1.
What do you mean by the term Efficiency in your language?
2.
Define Equity in your own Language.
Answer:
Efficiency Means: Efficiency
is the ability to avoid wasting materials, energy, efforts, money, and time in
doing something or in producing the desired result. In a more general sense, it
is the ability to do things well, successfully, and without waste. Efficiency
is thus not a goal in itself. It is not something we want for its own sake, but
rather because it helps us attain more of the things we value. In more
mathematical or scientific terms, signifies the level of performance that uses
the least amount of inputs to achieve the highest amount of output. It often
specifically comprises the capability of a specific application of effort to
produce a specific outcome with a minimum amount or quantity of waste, expense,
or unnecessary effort. Efficiency refers to very different inputs and outputs
in different fields and industries.
Definition of Equity: In
finance, equity is the 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. For example, if someone
owns a car worth $9,000 and owes $3,000 on the loan used to buy the car, the
difference of $6,000 is equity. Equity can apply to a single asset, such as a
car or house, or to an entire business. A business that needs to start up or
expand its operations can sell its equity in order to raise cash that does not
have to be repaid on a set schedule.
There are generally two types
of equity value:
1.
Book value
2.
Market value