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MHA 706 Module 1 (LSUS MHA 706) – Questions & Correct Answers.
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MHA 706 Module 1 (LSUS MHA 706) – Questions & Correct Answers.
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MHA 706 Module 1 (LSUS MHA 706) –Questions & Correct Answers
Healthcare Finance - CORRECT ANSWER-is the practice of finance, including
both accounting and financial management, within health services (provider)
organizations
Accounting - CORRECT ANSWER-concerns the measurement, in financial
(dollar) terms, of events that reflect the resources, operations, and financing of
an organization
Financial managment - CORRECT ANSWER-provides the theory, concepts, and
tools necessary to help managers make better financial decisions
Business characteristics - CORRECT ANSWER--obtains financing from the
marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
Pure Charity - CORRECT ANSWER-refers to an undertaking for a charitable
purpose only. The relief of poverty, advancement of education, advancement of
religion, promotion of health, the obtaining of good government, and the
accomplishment of that which is beneficial to the community in any other respect
are pure charities.
Primary role of finance - CORRECT ANSWER-is to plan for, acquire, and utilize
resources to maximize the efficiency (and hence value) of the enterprise.
The Four C's - CORRECT ANSWER-cost minimization
cash sufficiency
capital access
control of financial resources
3 categories of business organizations - CORRECT ANSWER-proprietorship,
partnership, and corporation (there are also hybrid forms)
, Advantages of Proprietorships and Partnerships - CORRECT ANSWER-ease of
formation, subject to few regulations, and no corporate income taxes.
Disadvantages to proprietorships and partnerships - CORRECT
ANSWER-limited life, difficult to transfer ownership, unlimited liability, difficult to
raise capital
Advantages to corporations - CORRECT ANSWER-unlimited life, easy transfer
of ownership, ease of raising capital
Disadvantages of corporations - CORRECT ANSWER-cost of formation and
reporting and double taxation for investor-owned corporations
Limited liability partnership LLP - CORRECT ANSWER-◦Partners share general
business liability, but partners are liable only for their own malpractice actions
Limited liability company LLC - CORRECT ANSWER-Members are taxed like
partners
and Liability like stockholders
Professional corporation (PC) or professional association (PA) - CORRECT
ANSWER-Owners have benefits of incorporation. However, still liable for
malpractice. Often used by individual clinicians.
Stakeholders - CORRECT ANSWER-have a (financial) interest in the business
Investor-owned corporations - CORRECT ANSWER-stems from their
organizational goal: shareholder wealth maximization
Not for profit - CORRECT ANSWER-is to ensure the financial viability of the
organization
Characteristics for insurance - CORRECT ANSWER-pooling of losses, payment
only for random losses, risk transfer, and indemnification
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