Discussion Forum

Efficiency is defined as the ability to produce something with a minimum amount of effort. An example of efficiency is a reduction in the number of workers needed to make a car. ... The efficiency of this loudspeaker is 40% productive of desired effects especially: capable of producing desired results with little or no waste (as of time or materials) an efficient worker efficient machinery being or involving the immediate agent in producing an effect the efficient action of heat in changing water to steam

Equity is ownership of an asset of value. Ownership is created when the owner contributes to the financing of the asset purchase. Another way to finance the asset purchase is with debt. The amount of equity used to purchase an asset is relative to the amount of debt. This is referred to as “the equity position.” Types of Equity There are various types of equity, depending on how the term is used. In investing, equity refers to stock as ownership in a corporation. In corporate finance, equity (more commonly referred to as shareholders’ equity) refers to the amount of capital contributed by the owners