C428 PRE-ASSESSMENT: FINANCIAL RESOURCE
MANAGEMENT IN HEALTHCARE PKJC
Attempt #1
1.
A medical center is expanding its hospital staff to accommodate the increasing number of flu cases seen over the past
weeks.
Which type of finance activity is described in this scenario?
YOUR
ANSWER
CORRECT...
c428 pre assessment financial resource management in healthcare pkjc attempt 1 1 a medical center is expanding its hospital staff to accommodate the increasing number of flu cases seen over the past
C428 PRE-ASSESSMENT: FINANCIAL RESOURCE
MANAGEMENT IN HEALTHCARE PKJC
Attempt #1
1.
A medical center is expanding its hospital staff to accommodate the increasing number of flu cases seen over the past
weeks.
Which type of finance activity is described in this scenario?
YOUR CORRECT
ANSWER ANSWER
Cost
Cash
Capital
Control
2.
A healthcare organization's senior finance leader is responsible for all financial plans and activities related to
reimbursement, accounting, budgeting, and management for a healthcare system’s financial well-being.
Which role matches this description?
YOUR CORRECT
ANSWER ANSWER
Controller
Treasurer
Staff accountant
Chief financial officer
3.
The most common structures of hospitals are religious, secular, or academic. These organizations raise capital
through donations and tax-exempt debt.
What is the legal structure of hospitals that raise capital through these means?
YOUR CORRECT
ANSWER ANSWER
, YOUR CORRECT
ANSWER ANSWER
Not-for-profit: to break even
For-profit: to maximize profits
For-profit: to maximize shareholder value
Not-for-profit: to meet charitable purposes
4.
An established diagnostic center needs a new mammogram machine. The center has incurred higher debt and is very
highly leveraged but decides to apply for another secured loan at its local bank.
What will the bank decide about the secured loan?
YOUR CORRECT
ANSWER ANSWER
The interest rate will be lower.
The interest rate will be higher.
The interest rate will be variable.
The interest rate will remain stable.
5.
A private hospital with a successful history of traditional patient care is seeking to open a holistic treatment center
off-site. It has secured an initial loan of five million dollars.
How would the nature of this venture affect the interest rate that could be expected on the loan?
YOUR CORRECT
ANSWER ANSWER
A lower interest rate loan due to the organization's current assets
A higher interest rate loan due to the hospital's success rate
A lower interest rate loan due to the location of new site
A higher interest rate loan due to the alternative patient care
6.
A healthcare organization has the following financial information available in a balance sheet:
,Assets:
, Cash of $10,000
Accounts receivable of $5,000
Machinery & equipment of $50,000
Liabilities:
Accounts payable of $6,000
Loans payable of $25,000
Common stock of $34,000
The organization decides to use $5,000 of the organization cash reserves to pay off some of the loans payable of
$25,000.
What is the organization's business debt after the debt is paid off?
YOUR CORRECT
ANSWER ANSWER
$10,000
$15,000
$20,000
$26,000
7.
A not-for-profit clinic is required to make monthly payments of $31,819.65 for the next 10 years to repay its long-
term debt. The interest rate is 5%.
What is the clinic's current level of business debt?
YOUR CORRECT
ANSWER ANSWER
$3 million
$4 million
$3.5 million
$2.5 million
8.
An insurance group is in the process of evaluating a zero coupon bond purchase from a healthcare organization that
needs capital financing. On January 1, 2001, the bonds were purchased at a discounted rate of $6,757.04 with a 5.5%
original-issue yield and semiannual compounding.
On which date will they become due if these bonds have a face value of $20,000, and assuming the interest rates
remain stable?
YOUR CORRECT
ANSWER ANSWER
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