A firm is characterized as being highly efficient if; Its' Intrinsic value is well above market value and If it has many closely-held projects and a high level of opacity
Efficiency of a company can be described as the condition whereby a firm produces and distributes its goods and services optimally.
Now, when the intrinsic value of a firm is above the market value of that same firm, it denotes that the firm is undervalued.
This means that the firm is giving more value to customers than the amount predicted in the market and as such we can say that such a firm is efficient.
Secondly, when a firm has closely-held projects, it means that the firm has diversified its source of potential income and that will ensure that the firm is continuously able to give more good value to its investors and customers and as such we can say the firm is highly efficient.
When a firm has a high level of opacity, it means that it would be able to raise capital at a lower cost due tot he fact that investors are likely to demand a lower rate of return.
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