SAMPLE MULTIPLE CHOICE QUESTION 1) What is the most significant disadvantage of proprietorships and partnerships? a) it is difficult to acquire substantial amounts of capital b) It is difficult for owners to sell their interest in the business c) The owners have unlimited personal liability for the debts of the business d) All of the above 2) Which of the following is true about tax laws for healthcare businesses? a) All hybrid form of businesses pays corporate income tax b) Not-for-profit corporations, for the most part, are not subject to income or property taxes c) Investor-owned corporations are subject to double taxation - once at the personal level, and again at the corporate level d) Both B and C 3) Which of the following is NOT true regarding reimbursement methods? a) In all prospective payment methods, providers have incentive to reduce costs because prices are fixed b) in capitation reimbursement, providers are paid a fixed amount based on the number of patients served, not the amount of services provided c) In fee-for-service reimbursement, providers have incentive to decrease the length of stay and diagnostic procedures d) in cost-based reimbursement, payers agree to reimburse the provider for the direct costs incurred in providing services to the insured population