Background: Businesses often use their profits (cash assets) to expand their portfolio such as investments, stock, bonds, capital expenditures, which can be used to increase revenue streams. They also invest for protection purposes so they don't have all of their money in one basket, sort of speak. According to our textbook, there are several reasons why a business must practice sound financial management.

With that said, your initial response needs to cover both Part 1 and Part 2:

Part 1:

Choose one investment option for a healthcare organization such as (1) investing in bonds and stocks, (2) investing in other healthcare organizations or mergers, or (3) expanding services (i.e., buying a building, ambulatory care center, surgery center, home health agency, or physician practice) or (4) Purchasing capital expenditures (i.e., MRI, PET scan, or other expensive equipment).

1. Discuss what might be required to invest in that particular option
2. Give the rationale of why you think the healthcare organization would benefit from using their cash assets to invest in the option you chose.

Part 2:

Name one health care financial or operational decision that is based on the organization's financial statements? Which financial statement would be best for making that decision?

Make sure your initial response is 175- to 265-words.