Question 1

Which budgetary issue causes the most strife in all areas of a health care organization? A. Setting volume levels B. Setting prices C. Allocation of indirect costs D. Deciding whether to use a fixed or flexible budget

5 points Question 2

Budgets normally cover a period of: A. 5 years B. 2 years C. 3 years D. 1 year

5 points Question 3

What is the basis for determining how much investment in assets is necessary for a health care firm? A. Revenue B. Expenses C. Debt policy D. ROE

5 points Question 4

What is the purpose of disbursement policies?

5 points Question 5

In most years and for most health care firms, how is a health care firm likely to increase its equity over the course of the year? A. By selling shares of stock B. By making a profit C. By selling assets D. By paying off debt

5 points Question 6

How can a for-profit healthcare firm increase its equity? A. Operating Income B. Non-operating income C. Issue stock D. Create partnerships E. All of the above

5 points Question 7

Does adding debt increase or decrease the flexibility of a healthcare provider? Why?

5 points Question 8

A program in a health care firm with high market share and low ROI is regarded as a "samaritan."

True

False

5 points Question 9

What is net working capital? A. Current assets less long-term liabilities B. Current assets less current liabilities C. The amount of permanent financing required to finance working capital or current assets. D. Both A and C E. Both B and C

5 points Question 10

What is an unsecured loan?

5 points Question 11

Healthcare firms can reasonably expect to finance all of their investment needs with debt.

True

False

5 points Question 12

What are the four phases of management control? 5 points Question 13

Define working capital. What is the difference between working capital and net working capital?

5 points Question 14

What are the four sources of long-term debt financing?

5 points Question 15

Which of the following is most directly related to strategic financial planning? A. ROI B. ROE C. EVA D. None of the above

5 points Question 16

________________ is a phase of management that is longer than budgeting, but shorter than planning.

5 points Question 17

What should be the basis of the annual budget? A. The financial plan B. Revenues C. Profitability D. None of the above

5 points Question 18

Effectiveness is a relationship between: A. Outputs and organizational goals B. Inputs and outputs C. Inputs and organizational goals D. None of the above

5 points Question 19

What avenues are available for not-for-profit healthcare providers to increase their equity position?

5 points Question 20

Program A has a profit of $5,000 and an investment of $100,000, while program B has a profit of $10,000 and an investment of $220,000. Which program has the better ROI? A. Program A B. Program B