MHA 706 CHAPTER 1-5 QUIZZES EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
Which of the following statements about finance, accounting, and financial management is most
correct?
a) Accounting is of no value in decision making.
b) Financing management is of no value in decision making.
c) Financial management is just the reporting of past organizational activities.
d) Financial management provides the theory, concepts, and tools necessary to help managers make
better financial decisions
d) Financial management provides the theory, concepts, and tools necessary to help managers make
better financial decisions
Which of the following are not finance activities?
a) Planning and budgeting
b) Facilities management
c) Financial reporting
d) Financing decisions
b) Facilities management
Which of the following statements about the finance department at large healthcare organizations is
most correct?
,a) The department is headed by the chief financial officer (CFO) (sometimes called the vice president-
finance)
b) The CFO typically reports directly to the chief executive officer (CEO).
c) The CFO usually is assisted by a comptroller and treasurer.
d) Answers a., b., and c. are correct.
d) Answers a., b., and c. are correct.
What is NOT an advantage of a proprietorship?
a) Unlimited liability
b) Ease of formation
c) No corporate income taxes
a) Unlimited liability
What is a disadvantage of being a corporation?
a) Unlimited life
b) Limited liability
c) External reporting
d) Answers a. and b. are correct
c) External reporting
Pick the answer that does NOT belong.
Stockholders have....
, a) A possible dividend and/or capital gains
b) Right of control
c) Claim on residual liquidation proceeds
d) Right to company product discounts
d) Right to company product discounts
A not-for-profit corporation can also be called a 529(b).
True or False
False
The primary goal of investor-owned corporations is shareholder wealth maximization.
True or False
True
What was NOT one of the major provisions of the Patient Protection and Affordable Care Act of 2010?
a) Free preventive care
b) Banning of preexisting condition coverage limitations
c) To reduce coverage for 10 essential health benefits
c) To reduce coverage for 10 essential health benefits
A medical home is all of the following BUT .....
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
Which of the following statements about finance, accounting, and financial management is most
correct?
a) Accounting is of no value in decision making.
b) Financing management is of no value in decision making.
c) Financial management is just the reporting of past organizational activities.
d) Financial management provides the theory, concepts, and tools necessary to help managers make
better financial decisions
d) Financial management provides the theory, concepts, and tools necessary to help managers make
better financial decisions
Which of the following are not finance activities?
a) Planning and budgeting
b) Facilities management
c) Financial reporting
d) Financing decisions
b) Facilities management
Which of the following statements about the finance department at large healthcare organizations is
most correct?
,a) The department is headed by the chief financial officer (CFO) (sometimes called the vice president-
finance)
b) The CFO typically reports directly to the chief executive officer (CEO).
c) The CFO usually is assisted by a comptroller and treasurer.
d) Answers a., b., and c. are correct.
d) Answers a., b., and c. are correct.
What is NOT an advantage of a proprietorship?
a) Unlimited liability
b) Ease of formation
c) No corporate income taxes
a) Unlimited liability
What is a disadvantage of being a corporation?
a) Unlimited life
b) Limited liability
c) External reporting
d) Answers a. and b. are correct
c) External reporting
Pick the answer that does NOT belong.
Stockholders have....
, a) A possible dividend and/or capital gains
b) Right of control
c) Claim on residual liquidation proceeds
d) Right to company product discounts
d) Right to company product discounts
A not-for-profit corporation can also be called a 529(b).
True or False
False
The primary goal of investor-owned corporations is shareholder wealth maximization.
True or False
True
What was NOT one of the major provisions of the Patient Protection and Affordable Care Act of 2010?
a) Free preventive care
b) Banning of preexisting condition coverage limitations
c) To reduce coverage for 10 essential health benefits
c) To reduce coverage for 10 essential health benefits
A medical home is all of the following BUT .....
