How is efficiency in a business primarily measured?

Efficiency in a business is primarily measured by managing costs and assets. This is because efficiency is fundamentally about how well a business uses its resources—both financial and physical—to produce goods or deliver services. High efficiency means that the business is able to minimize costs while maximizing output or value created.

When costs are managed effectively, a business can operate with lower expenses, which directly improves profitability. Additionally, the management of assets—ensuring that resources like equipment, inventory, and facilities are used effectively—contributes to smoother operations and can enhance productivity. These factors are critical for determining how efficiently a business runs, as they reflect the relationship between inputs (costs and assets) and outputs (goods produced or services rendered).

The other options, while important aspects of a business's overall strategy, do not primarily measure efficiency. For example, revenue growth indicates how successful a business is in increasing sales but does not provide insight into how well it manages its costs relative to those sales. Market share analysis focuses on competitive position rather than operational efficiency. Employee satisfaction is crucial for overall performance and retention but may not directly correlate to the efficiency of resource use in the business.