Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Businesses often use their profits (cash assets or revenue) to expand their portfolios, such as investments, which may include stocks, bonds, and capital expenditures. This

Businesses often use their profits (cash assets or revenue) to expand their portfolios, such as investments, which may include stocks, bonds, and capital expenditures. This can be used to increase revenue streams. They also invest for protection purposes so they don't have all of their money invested in 1 place. According to Accounting, there are several reasons why a business must practice sound financial management when using its profits.
Select 1 of the business investment options below to use for this discussion: Investing in stocks and bonds Use THIS TOPIC Investing in other businesses or mergers Expanding services (e.g., ambulatory care center, home health agency, or buying a physician practice) Purchasing capital expenditures (e.g., MRI, PET Scan, electronic medical records system, or other large purchases) 

Questions:1) Using your selected business investment option, respond to the following in a minimum of 175 words: Explain the investment option.

2) Discuss what you might need to do during your analysis to decide to invest using the selected option. 

3) Identify the financial statement you would use to help you make the decision.

4) Provide a rationale for why you think the health care organization would benefit from using their cash assets to invest in the option you selected.

Step by Step Solution

3.31 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

1 Investing in Stocks and Bonds Investing in stocks and bonds is a popular investment option for businesses looking to expand their portfolio Stocks and bonds are securities that represent ownership i... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

9th Edition

1337614689, 1337614688, 9781337668262, 978-1337614689

More Books

Students also viewed these Accounting questions

Question

Explain the client-based architecture.

Answered: 1 week ago

Question

Describe the components of identity.

Answered: 1 week ago