What does a power factor less than one imply?

A power factor less than one indicates that the electrical system is not operating at maximum efficiency. The power factor is a measure of how effectively electrical power is being converted into useful work output. When the power factor is less than one, it often means that there is a significant amount of reactive power in the system, which does not contribute to the work being done, but rather circulates between the source and the load.

This inefficiency can arise from inductive loads such as motors and transformers, which can cause the current to lag behind the voltage, resulting in a lower power factor. A power factor of one would signify that all the power supplied is being used effectively in performing work. Therefore, maintaining a power factor close to one is desirable for the efficiency and performance of an electrical system.

Contextually, the other options present different scenarios that do not appropriately reflect the implications of a power factor less than one. It does not specifically indicate a short circuit, nor does it suggest that current exceeds voltage in a general sense, and it certainly does not imply that the system is entirely operational without any issues regarding inefficiency.