A battery's electromotive force (emf) represents the maximum energy supplied per coulomb of charge, while terminal voltage is the actual voltage available at the battery's terminals. The difference arises due to internal resistance; when current flows, some emf is lost as voltage drop across this resistance. Terminal voltage equals emf only when no current flows, as there are no 'lost' volts. Conversely, during a short circuit, all emf is dropped across internal resistance, resulting in zero terminal voltage. Understanding this distinction is crucial for evaluating battery performance in various applications.