Test your knowledge questions 1-8

Test Your Knowledge 7 3. 4. a. 5. Finance Provision of analyses, concerning the acquisition and disposition of the organi- zation's resources. Goals of Financial Management Profitability-A trade-off always exists between maximization of expected profits and the acceptable level of risk. Undertaking greater risk requires greater anticipated returns. b. Viability-A trade-off always exists between viability and profitability. Greater liquidity results in more safety, but lower profits. 6. What are the primary goals of financial management for not-for-profit health care organizations? What are the uses of profit for health care organizations? Explain the relationship between finan- cial risk and financial return. Why doesn't every person or organiza- tion invest all available funds into the stock market, which has the highest expected return? What do accountants mean when they say short-term" and "long-term"? Explain how an organization's liquidity and solvency are related. 7. 8. Test Your Knowledge 1. Explain the primary functions of finance. 2. Explain the primary functions of accounting