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WGU C432 Healthcare Management and Strategy Exam/
Practice Exam Questions with Correct Verified Answers/
Rated A+
Accountable Care Organization (ACO) - ANSWER - payment and healthcare delivery
model in which a group of healthcare providers work together to coordinate a patient's
care, improve quality, and reduce costs
Accounts receivable - ANSWER - monies customers owe to a business for goods and
services they have received
Acid/quick ratio - ANSWER - combined amount of an organization's cash and
marketable securities divided by its current liabilities. examines an organization's ability
to pay its current liabilities with cash and cash equivalents
Activity ratios - ANSWER - measures how efficiently an organization uses its resources
Affordable Care Act (ACA) - ANSWER - law passed by the federal government in 2010
that seeks to decrease the number of uninsured to improve health outcomes and
streamline the delivery of healthcare
Annual budget process - ANSWER - yearly generation of action plans and budgets to
drive implementation of strategies and subsequent control of problems and evaluation
of progress
Asset turnover - ANSWER - an organization's operating revenues divided by its total
assets. identifies the amount of money each dollar of assets creates over a defined
period
, 2
Horizontal diversification - ANSWER - adding new products or services to an
organization's existing offerings
Societal environment - ANSWER - public and socioeconomic factors surrounding and
influencing an organization
Unrelated (conglomerate or lateral) diversification - ANSWER - addition of new products
or services that have little or no overlap with an organization's current products/services
and assets
Vertical expansion - ANSWER - acquisition of a business that is a source of supplies for
the acquiring organization (backward expansion) or that purchases from the acquiring
organization (forward expansion)
Vertical integration - ANSWER - assimilation of the vertical components of an
organization through greater internal control and coordination
Virtual integration - ANSWER - coordination of intra-organization processes, flows, and
outcomes through contractual, non-owned mechanisms
Accountable care organization (ACO) - ANSWER - payment and healthcare delivery
model in which a group of healthcare providers work together to coordinate a patient's
care, improve quality, and reduce costs
Barriers to entry - ANSWER - obstacles that impede an organization from entering a
market
Benchmarking - ANSWER - comparison of internal data to those of outside
organizations for the purpose of evaluating an organization's performance
Business plan - ANSWER - written document that defines, analyzes, and promotes a
specific proposal, line of business, or innovative concept
, 3
Certificate of need (CON) - ANSWER - state laws in the United States that require
organizations to obtain approval from a state planning agency before beginning a major
capital project
Average payment period - ANSWER - an organization's accounts payable divided by its
annual purchases divided by 365. presents the number of days an organization takes to
pay its credit purchases
Balanced scorecards - ANSWER - a monitoring system used to simultaneously evaluate
multiple metrics and gather feedback on strategic progress
Balance sheet - ANSWER - financial statement of an organization's assets, liabilities,
and capital at a given point in time
Budget variance - ANSWER - difference between a budgeted amount and actual
expenditures
Capital budget - ANSWER - estimated dollar amount to be expended on projects in a
given fiscal period
Current ratio - ANSWER - an organization's current assets divided by its current
liabilities. determines the degree to which an organization can pay its current liabilities
with liquid assets
Dashboards - ANSWER - data visualization tool that displays the statuses of key
metrics and performance indicators
Days of cash on hand - ANSWER - combined amount of an organization's cash and
marketable securities divided by its operating expenses less depreciation, all divided by
365. this liquidity indicator evaluates how many days an organization could pay its daily
operating expenses without additional cash inflows
WGU C432 Healthcare Management and Strategy Exam/
Practice Exam Questions with Correct Verified Answers/
Rated A+
Accountable Care Organization (ACO) - ANSWER - payment and healthcare delivery
model in which a group of healthcare providers work together to coordinate a patient's
care, improve quality, and reduce costs
Accounts receivable - ANSWER - monies customers owe to a business for goods and
services they have received
Acid/quick ratio - ANSWER - combined amount of an organization's cash and
marketable securities divided by its current liabilities. examines an organization's ability
to pay its current liabilities with cash and cash equivalents
Activity ratios - ANSWER - measures how efficiently an organization uses its resources
Affordable Care Act (ACA) - ANSWER - law passed by the federal government in 2010
that seeks to decrease the number of uninsured to improve health outcomes and
streamline the delivery of healthcare
Annual budget process - ANSWER - yearly generation of action plans and budgets to
drive implementation of strategies and subsequent control of problems and evaluation
of progress
Asset turnover - ANSWER - an organization's operating revenues divided by its total
assets. identifies the amount of money each dollar of assets creates over a defined
period
, 2
Horizontal diversification - ANSWER - adding new products or services to an
organization's existing offerings
Societal environment - ANSWER - public and socioeconomic factors surrounding and
influencing an organization
Unrelated (conglomerate or lateral) diversification - ANSWER - addition of new products
or services that have little or no overlap with an organization's current products/services
and assets
Vertical expansion - ANSWER - acquisition of a business that is a source of supplies for
the acquiring organization (backward expansion) or that purchases from the acquiring
organization (forward expansion)
Vertical integration - ANSWER - assimilation of the vertical components of an
organization through greater internal control and coordination
Virtual integration - ANSWER - coordination of intra-organization processes, flows, and
outcomes through contractual, non-owned mechanisms
Accountable care organization (ACO) - ANSWER - payment and healthcare delivery
model in which a group of healthcare providers work together to coordinate a patient's
care, improve quality, and reduce costs
Barriers to entry - ANSWER - obstacles that impede an organization from entering a
market
Benchmarking - ANSWER - comparison of internal data to those of outside
organizations for the purpose of evaluating an organization's performance
Business plan - ANSWER - written document that defines, analyzes, and promotes a
specific proposal, line of business, or innovative concept
, 3
Certificate of need (CON) - ANSWER - state laws in the United States that require
organizations to obtain approval from a state planning agency before beginning a major
capital project
Average payment period - ANSWER - an organization's accounts payable divided by its
annual purchases divided by 365. presents the number of days an organization takes to
pay its credit purchases
Balanced scorecards - ANSWER - a monitoring system used to simultaneously evaluate
multiple metrics and gather feedback on strategic progress
Balance sheet - ANSWER - financial statement of an organization's assets, liabilities,
and capital at a given point in time
Budget variance - ANSWER - difference between a budgeted amount and actual
expenditures
Capital budget - ANSWER - estimated dollar amount to be expended on projects in a
given fiscal period
Current ratio - ANSWER - an organization's current assets divided by its current
liabilities. determines the degree to which an organization can pay its current liabilities
with liquid assets
Dashboards - ANSWER - data visualization tool that displays the statuses of key
metrics and performance indicators
Days of cash on hand - ANSWER - combined amount of an organization's cash and
marketable securities divided by its operating expenses less depreciation, all divided by
365. this liquidity indicator evaluates how many days an organization could pay its daily
operating expenses without additional cash inflows
