Investor owned corporations Answer Selected Answer: D. have stockholders who are the owners of the corporations. Stockholders exercise control through the proxy process in which they elect the corporation board of directors and vote on matter of major consequence to the firm. As owners, stockholders have a claim on the residual earning or the corporation. Investor owned corporations are fully taxable. Correct Answer: D. have stockholders who are the owners of the corporations. Stockholders exercise control through the proxy process in which they elect the corporation board of directors and vote on matter of major consequence to the firm. As owners, stockholders have a claim on the residual earning or the corporation. Investor owned corporations are fully taxable. Moral Hazard occurs Answer Selected Answer: D. when an insured individual purposely sustains a loss, as opposed to a random loss. In a health insurance setting, moral hazard is more subtle, producing such behaviors as seeking more services than needed and engaging in unhealthy behavior because the potential costs are borne by someone else. Correct Answer: D. when an insured individual purposely sustains a loss, as opposed to a random loss. In a health insurance setting, moral hazard is more subtle, producing such behaviors as seeking more services than needed and engaging in unhealthy behavior because the potential costs are borne by someone else. Response Feedback: Very good. Budgeting provides Answer Selected Answer: A. a mean for communications and coordination of organizational expectations as well as allocation of financial resources. In addition, budgeting establishes benchmarks for control. Correct Answer: A. a mean for communications and coordination of organizational expectations as well as allocation of financial resources. In addition, budgeting establishes benchmarks for control. Response Feedback: Nice. Healthcare organizations that meet certain criteria can be organized as.. Answer Selected Answer: A. as not-for-profit corporations, which are governed by a board of trustees. Rather than having a well defined set of owners, such organizations have a large number of stakeholders who have an interest in the organization. In effect, not –for profit corporations are owned by the communities they serve, although technically they have no owners Correct Answer: A. as not-for-profit corporations, which are governed by a board of trustees. Rather than having a well defined set of owners, such organizations have a large number of stakeholders who have an interest in the organization. In effect, not –for profit corporations are owned by the communities they serve, although technically they have no owners Response Feedback: Good! A business maintains its financial viability Answer Selected Answer: C. by selling goods or services, while a pure charity relies solely on contributions. Correct Answer: C. by selling goods or services, while a pure charity relies solely on contributions. Response Feedback: Nice! Adverse Selection Answer Selected Answer: D. occurs when individuals most likely to have claims purchase insurance, while those least likely have claims do not. Correct Answer: D. occurs when individuals most likely to have claims purchase insurance, while those least likely have claims do not. Response Feedback: Very Good. Finance Activities can be summarized by… Answer Selected Answer: B. by the four Cs: costs, cash, capital, and control. Correct Answer: B. by the four Cs: costs, cash, capital, and control. Response Feedback: Nice Job! In 1983 the federal government adopted the Answer Selected Answer: D. inpatient prospective payment system (IPPS) for Medicare hospital inpatient reimbursement. Under this system, the amount of payment is fixed by the patient’s diagnoses , as indicated by the diagnoses-related group (DRG) Correct Answer: D. inpatient prospective payment system (IPPS) for Medicare hospital inpatient reimbursement. Under this system, the amount of payment is fixed by the patient’s diagnoses , as indicated by the diagnoses-related group (DRG) Under a retrospective payment cost system, Answer Selected Answer: D. the payer agrees to pay the provider certain allowable costs that are incurred in providing services to the payers enrollees. Correct Answer: D. the payer agrees to pay the provider certain allowable costs that are incurred in providing services to the payers enrollees. Response Feedback: very very good! Breakeven Analysis Answer Selected Answer: A. is used to estimate the volume needed (or the value of some other variable) for the organization to break even in profitability. Correct Answer: A. is used to estimate the volume needed (or the value of some other variable) for the organization to break even in profitability. Response Feedback: Correct. Negotiated charges Answer Selected Answer: C. which are discounted from billed (chargemster) charges are often used by insurers in conjunction with managed care plans. Correct Answer: C. which are discounted from billed (chargemster) charges are often used by insurers in conjunction with managed care plans. All business decisions have financial implications, Answer Selected Answer: D. so all managers (whether in operations, marketing, personnel, or facilities) must know enough about finance to incorporate its implications into their own specialized decision processes. Correct Answer: D. so all managers (whether in operations, marketing, personnel, or facilities) must know enough about finance to incorporate its implications into their own specialized decision processes. Response Feedback: Well done! Continue!

Investor owned corporations
Answer
Selected Answer:      D. 
have stockholders who are the owners of the corporations. Stockholders exercise control through the proxy process in which they elect the corporation board of directors and vote on matter of major consequence to the firm. As owners, stockholders have a claim on the residual earning or the corporation. Investor owned corporations are fully taxable.
Correct Answer:      D. 
have stockholders who are the owners of the corporations. Stockholders exercise control through the proxy process in which they elect the corporation board of directors and vote on matter of major consequence to the firm. As owners, stockholders have a claim on the residual earning or the corporation. Investor owned corporations are fully taxable.


Moral Hazard occurs
Answer
Selected Answer:      D. 
when an insured individual purposely sustains a loss, as opposed to a random loss. In a health insurance setting, moral hazard is more subtle, producing such behaviors as seeking more services than needed and engaging in unhealthy behavior because the potential costs are borne by someone else.
Correct Answer:      D. 
when an insured individual purposely sustains a loss, as opposed to a random loss. In a health insurance setting, moral hazard is more subtle, producing such behaviors as seeking more services than needed and engaging in unhealthy behavior because the potential costs are borne by someone else.
Response Feedback:     Very good.


 Budgeting provides
Answer
Selected Answer:      A. 
a mean for communications and coordination of organizational expectations as well as allocation of financial resources. In addition, budgeting establishes benchmarks for control.
Correct Answer:      A. 
a mean for communications and coordination of organizational expectations as well as allocation of financial resources. In addition, budgeting establishes benchmarks for control.
Response Feedback:     Nice.


Healthcare organizations that meet certain criteria can be organized as..
Answer
Selected Answer:      A. 
as not-for-profit corporations, which are governed by a board of trustees. Rather than having a well defined set of owners, such organizations have a large number of stakeholders who have an interest in the organization. In effect, not –for profit corporations are owned by the communities they serve, although technically they have no owners
Correct Answer:      A. 
as not-for-profit corporations, which are governed by a board of trustees. Rather than having a well defined set of owners, such organizations have a large number of stakeholders who have an interest in the organization. In effect, not –for profit corporations are owned by the communities they serve, although technically they have no owners
Response Feedback:     Good!


A business maintains its financial viability
Answer
Selected Answer:      C. 
by selling goods or services, while a pure charity relies solely on contributions.
Correct Answer:      C. 
by selling goods or services, while a pure charity relies solely on contributions.
Response Feedback:     Nice!


Adverse Selection
Answer
Selected Answer:      D. 
occurs when individuals most likely to have claims purchase insurance, while those least likely have claims do not.
Correct Answer:      D. 
occurs when individuals most likely to have claims purchase insurance, while those least likely have claims do not.
Response Feedback:     Very Good.


Finance Activities can be summarized by…


Answer
Selected Answer:      B. 
by the four Cs: costs, cash, capital, and control.
Correct Answer:      B. 
by the four Cs: costs, cash, capital, and control.
Response Feedback:     Nice Job!


In 1983 the federal government adopted the
Answer
Selected Answer:      D. 
inpatient prospective payment system (IPPS) for Medicare hospital inpatient reimbursement. Under this system, the amount of payment is fixed by the patient’s diagnoses , as indicated by the diagnoses-related group (DRG)
Correct Answer:      D. 
inpatient prospective payment system (IPPS) for Medicare hospital inpatient reimbursement. Under this system, the amount of payment is fixed by the patient’s diagnoses , as indicated by the diagnoses-related group (DRG)


Under a retrospective payment cost system,
Answer
Selected Answer:      D. 
the payer agrees to pay the provider certain allowable costs that are incurred in providing services to the payers enrollees.
Correct Answer:      D. 
the payer agrees to pay the provider certain allowable costs that are incurred in providing services to the payers enrollees.
Response Feedback:     very very good!


 Breakeven Analysis
Answer
Selected Answer:      A. 
is used to estimate the volume needed (or the value of some other variable) for the organization to break even in profitability.
Correct Answer:      A. 
is used to estimate the volume needed (or the value of some other variable) for the organization to break even in profitability.
Response Feedback:     Correct.


Negotiated charges
Answer
Selected Answer:      C. 
which are discounted from billed (chargemster) charges are often used by insurers in conjunction with managed care plans.
Correct Answer:      C. 
which are discounted from billed (chargemster) charges are often used by insurers in conjunction with managed care plans.


 All business decisions have financial implications,
Answer
Selected Answer:      D. 
so all managers (whether in operations, marketing, personnel, or facilities) must know enough about finance to incorporate its implications into their own specialized decision processes.
Correct Answer:      D. 
so all managers (whether in operations, marketing, personnel, or facilities) must know enough about finance to incorporate its implications into their own specialized decision processes.
Response Feedback:     Well done! Continue!