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Question 21 Which of the following statements about healthcare providers is incorrect? a. Traditional outpatient settings include clinics, medical practices, hospital outpatient departments, and emergency rooms. b. Long-term care includes both healthcare and personal care services. c. There are many more hospitals than there are nursing homes, but nursing homes tend to have a greater number of beds. d. One of the hypothesized benefits of integrated delivery systems is patient capture. e. Patients with chronic illnesses are best treated by a single case manager regardless of the provider setting.
Question 22 Which of the following statements about regulatory and legal issues is most correct? a. States require licensure of certain healthcare providers to limit the number of providers. b. The goal of certificate of need (CON) regulation is to ensure that there are a sufficient number of clinical workers at each hospital and nursing home. c. Clinicians who are employees of hospitals do not require personal licenses, as they can practice under the umbrella of the hospital’s license. d. For most providers, the primary legal concern is professional liability. e. Healthcare managers must grapple with several legal issues, but there are virtually no ethical issues that arise.
Question 23 Which of the following statements about the qualitative approach to project risk assessment is most correct? a. Qualitative risk assessment involves the answers to a number of yes/no questions. b. Typically, yes answers are assigned one point and no answers zero points. c. The higher the score, the greater the risk. d. Typically, qualitative risk assessment is used in conjunction with a quantitative risk assessment (as opposed to in place of a quantitative risk assessment). e. All of the above statements are correct.
Question 24 Which of the following pricing strategies is most likely to lead to long-term financial sustainabil a. Full cost b. Marginal cost c. Direct cost d. Indirect cost e. Variable cost
Question 25 Which of the following statements about the tradeoff theory of capital structure is most correct? a. The trade-off theory can be used to set a precise optimal structure for any given business. b. The trade-off theory tells us that businesses should use almost 100 percent debt financing. c. The trade-off theory tells us that businesses should use almost no debt financing. d. The trade-off theory tells us that businesses should use some debt financing, but not too much. e. The trade-off theory has no applicability at all to not-for-profit businesses.
Question 26 Which of the following factors influence the estimate of a business’s optimal capital structure? a. The amount of business (inherent) risk b. Lender/rating agency attitudes c. Industry averages d. The need to maintain financial flexibility (reserve borrowing capacity) e. All of the above factors influence the estimate
Question 27 Which of the following statements concerning net income versus cash flow is most correct? a. Net income is a rough measure of a business’s cash flow. b. Net income can be converted into a rough measure of cash flow by adding noncash expenses, typically depreciation. c. Net income can be converted into a rough measure of cash flow by adding nonoperating income. d. Net income can be converted into a rough measure of cash flow by adding the provision for bad debts. e. None of the above statements are correct.
Question 28 True or False: Float is the difference between the balance shown on the bank’s books and the balance on the business’s own checkbook.
Question 29 True or False: From a financial perspective, businesses and pure charities are identical (operate in a similar fashion).
Question 30 True or False: In economics, the situation in which average cost (per unit of output) declines as volume increases is known as economies of scope.
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