Question:

‘CARO Tech Solutions’ aimed at development of a software system for the company’s growing operations. The project was to be completed within six months with a budget of ₹ 12,00,000.

The software development team successfully completed its project on time by outsourcing a part of the project, leading to an additional expense of ₹ 2,00,000.

From the following, identify whether the software development team is :

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Being effective means finishing the task, and being efficient means finishing it at the planned cost. The team met the deadline but spent Rs. 2,00,000 more than planned.
Updated On: Oct 26, 2026
  • Efficient and Effective
  • Efficient but not effective
  • Effective but not efficient
  • Neither efficient nor effective
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The Correct Option is C

Solution and Explanation

Step 1: Understand the concepts:
Effectiveness means completing the given task on time. It is about doing the right thing and reaching the goal.
Efficiency means doing the task correctly with the least cost. It is about a good ratio of output to input.
A team can be effective without being efficient, and the reverse is also true.

Step 2: Apply to the case:
The project was to be finished within six months with a budget of Rs. 12,00,000.
The team finished the project on time, so the goal was reached. The team is effective.
But it outsourced a part of the work and spent Rs. 2,00,000 extra, so the total cost went above the budget. The team is not efficient.

Step 3: Check the options:
(A) Efficient and Effective: wrong, because the extra cost shows it was not efficient.
(B) Efficient but not effective: wrong, because the project was completed on time, so it was effective.
(C) Effective but not efficient: right, because the goal was met but the cost went above the budget.
(D) Neither efficient nor effective: wrong, because the project was finished on time.

Final Answer:
The team is effective but not efficient, which is option (C).
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