HSMA 4055 FINAL EXAM REVIEW || WITH COMPLETE
SOLUTIONS.
Which of the following is not a finance activity? correct answers Facilities management
A considerable barrier to obtaining insurance for young adults was originally addressed with the
ACA in the mandatory requirement of insurance for all. To that end, the law specifically
provided correct answers coverage for young adults between 19 and 26 on their parents' policies.
In the United States, the highest proportion of healthcare expenditures is for _______________.
correct answers hospital care
Which of the following statements about the finance department at a large healthcare
organization is most correct? correct answers All of the above statements are correct.
Which of the following statements about finance, accounting, or financial management is most
correct? correct answers The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
Which of the following statements about hospitals is most correct? correct answers The majority
of hospitals are public or not-for-profit (as opposed to investor owned).
Key stakeholders in the health care system include providers who are identified as persons and
organizations that deliver health care services to patients. All the following are providers except
correct answers suppliers, consumers, and regulators.
The ACA is to be phased in over 10 years. The initial impetus and primary focus of the ACA
was correct answers All of the above
ACA stipulates which of the following entities are eligible to participate as ACOs: correct
answers All the above
The structure of the U.S. healthcare system has five principal components. An example of
delivery services would be correct answers basic diagnostic and preventative treatment by
primary care providers.
The single largest payer group for health care services is correct answers Government
Which of the following statements about healthcare providers is incorrect? correct answers There
are many more hospitals than there are nursing homes, but nursing homes tend to have a greater
number of beds.
Which of the following statements about regulatory and legal issues is most correct? correct
answers For most providers, the primary legal concern is professional liability.
, The ACA positively impacted nurses by expanding opportunities in which of the following
correct answers A and B
Which of the following activities are business characteristics? correct answers All of the above
are business characteristics.
Which of the following statements about the legal forms of for-profit business organization is
most correct? correct answers Corporations have the advantage of limited liability to owners.
Which of the following statements about investor-owned (for-profit) corporations is incorrect?
correct answers When an individual sells his or her stock, the company receives the proceeds
from the sale.
Which of the following statements about not-for-profit corporations is most correct? correct
answers They can issue tax-exempt (municipal) debt.
Which of the following individuals are not stakeholders in not-for-profit corporations? correct
answers Stockholders
Assume that Jane Adams pays income taxes at a 35 percent rate. What would be the after-tax
amount on $100 of interest income that she receives? correct answers $65
Assume that John Richards pays income taxes at a 30 percent rate. He currently owns a not-for-
profit (municipal) bond that pays 5 percent interest. What interest rate would have to be set on a
for-profit (corporate) bond to produce the same amount of usable (after-tax) income? correct
answers 7.1 percent
Which of the following statements about benefit corporations (B corporations) is most correct?
correct answers They allow corporate boards and managers to sacrifice shareholder value for the
greater good.
Assume that Reginald Worthington, who pays 40 percent in income taxes, plans to contribute
$100,000 to not-for-profit Ravenswood Community Hospital. Without the contribution, his tax
bill would be $500,000. What would be his tax bill if makes the contribution? correct answers
$460,000
To be workable, insurance must have which of the following characteristics? correct answers All
of the above
Which of the following statements about adverse selection and underwriting is incorrect? correct
answers Health insurers have unlimited power to set underwriting provisions.
Which of the following statements about fee-for-service reimbursement is incorrect? correct
answers Payment may be based on the number of covered lives.
SOLUTIONS.
Which of the following is not a finance activity? correct answers Facilities management
A considerable barrier to obtaining insurance for young adults was originally addressed with the
ACA in the mandatory requirement of insurance for all. To that end, the law specifically
provided correct answers coverage for young adults between 19 and 26 on their parents' policies.
In the United States, the highest proportion of healthcare expenditures is for _______________.
correct answers hospital care
Which of the following statements about the finance department at a large healthcare
organization is most correct? correct answers All of the above statements are correct.
Which of the following statements about finance, accounting, or financial management is most
correct? correct answers The primary role of finance is to plan for, acquire, and use resources to
maximize the efficiency (and value) of the enterprise.
Which of the following statements about hospitals is most correct? correct answers The majority
of hospitals are public or not-for-profit (as opposed to investor owned).
Key stakeholders in the health care system include providers who are identified as persons and
organizations that deliver health care services to patients. All the following are providers except
correct answers suppliers, consumers, and regulators.
The ACA is to be phased in over 10 years. The initial impetus and primary focus of the ACA
was correct answers All of the above
ACA stipulates which of the following entities are eligible to participate as ACOs: correct
answers All the above
The structure of the U.S. healthcare system has five principal components. An example of
delivery services would be correct answers basic diagnostic and preventative treatment by
primary care providers.
The single largest payer group for health care services is correct answers Government
Which of the following statements about healthcare providers is incorrect? correct answers There
are many more hospitals than there are nursing homes, but nursing homes tend to have a greater
number of beds.
Which of the following statements about regulatory and legal issues is most correct? correct
answers For most providers, the primary legal concern is professional liability.
, The ACA positively impacted nurses by expanding opportunities in which of the following
correct answers A and B
Which of the following activities are business characteristics? correct answers All of the above
are business characteristics.
Which of the following statements about the legal forms of for-profit business organization is
most correct? correct answers Corporations have the advantage of limited liability to owners.
Which of the following statements about investor-owned (for-profit) corporations is incorrect?
correct answers When an individual sells his or her stock, the company receives the proceeds
from the sale.
Which of the following statements about not-for-profit corporations is most correct? correct
answers They can issue tax-exempt (municipal) debt.
Which of the following individuals are not stakeholders in not-for-profit corporations? correct
answers Stockholders
Assume that Jane Adams pays income taxes at a 35 percent rate. What would be the after-tax
amount on $100 of interest income that she receives? correct answers $65
Assume that John Richards pays income taxes at a 30 percent rate. He currently owns a not-for-
profit (municipal) bond that pays 5 percent interest. What interest rate would have to be set on a
for-profit (corporate) bond to produce the same amount of usable (after-tax) income? correct
answers 7.1 percent
Which of the following statements about benefit corporations (B corporations) is most correct?
correct answers They allow corporate boards and managers to sacrifice shareholder value for the
greater good.
Assume that Reginald Worthington, who pays 40 percent in income taxes, plans to contribute
$100,000 to not-for-profit Ravenswood Community Hospital. Without the contribution, his tax
bill would be $500,000. What would be his tax bill if makes the contribution? correct answers
$460,000
To be workable, insurance must have which of the following characteristics? correct answers All
of the above
Which of the following statements about adverse selection and underwriting is incorrect? correct
answers Health insurers have unlimited power to set underwriting provisions.
Which of the following statements about fee-for-service reimbursement is incorrect? correct
answers Payment may be based on the number of covered lives.
