Which of the following statements about the legal forms of for-profit business organization is most correct? Hybrid forms of business cannot be used by healthcare organizations Corporations have the advantage of limited liability to owners Corporations are easier to form than are proprietorships Partnerships are applicable when there are more than three owners, while proprietorships are used when there are three or fewer owners Chatham Home Health Services has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000 and total assets of $22,500,000, what is Grady's return on assets (ROA)? 8.0% 13.3% 5.3% 10.9% The result(s) from DuPont Analysis provide a direct estimate of the organization's debt management performance. True False Because the organizational and financial goals of for-profit and not-for-profit provider organizations differ from each other, their financial decision-making processes usually lead to very different decisions. Assume Mercy Hospital uses the accrual basis of accounting under GAAP. Which of the following statements is most correct? Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor Patient service revenue is recognized when services are provided Patient service revenue is recognized when payment is received by the hospital from a third-party payer Salaries expense is recognized when payroll checks are written/processed Which of the following reimbursement methods creates the greatest incentive for providers to reduce the cost of delivering health services? Capitation Charge-based reimbursement Prospective payment-based reimbursement (e.g. MS-DRG) Cost-based reimbursement An organization increases the amount of total assets it has on its balance sheet during the year 2020 . Which of the following statements is true regarding how those assets are financed? Liabilities must increase to finance the growth in assets Liabilities must decrease to finance the growth in assets Owners' equity must decrease to finance the growth in assets Depreciation must increase to finance the growth in assets