PAPER 2026 FULL QUESTIONS AND
CORRECT ANSWERS
◉ Which of the following is the least serious limitation of decision
analysis
A) oversimplification if the problem
B) inadequate data
C) the decision makers values
D) the statistical model.
Answer: D
◉ In a unionized organization what is the most effective contract
dispute resolution finalization alternative
A) mediation
B) corporate campaigns
C) arbitration
D) strike.
Answer: C
◉ What does a liquidity ratio measure
,A) a firm's ability to meet its current obligations in a timely manner
B) size of dividends to be paid to shareholders
C) the percent of total funds provided by creditors
D) days in AR.
Answer: A
◉ The real value of financial statements lies in the fact they can be
used to help
A) predict the firms financial condition
B) compute total margin vs periodic gains
C) relate the industry average new product/loss over time
D) understand that a large portion of a hospitals net income may
come from non-operating gains.
Answer: A
◉ Facing struggle such as declining profit margins, nonprofit HCOs
have become more dependent on what source of financing capital
needs
A) philanthropy
B) bond financing
C) capital leases
D) operational leases.
Answer: A
,◉ You work for a county organization that has decided to issue
bonds to fund a new building. What type of bond would be sold on
behalf of your organization
A) mortgage bonds
B) corporate bonds
C) capital bonds
D) municipal bonds.
Answer: D
◉ On a balance sheet, what does the different between total current
assets and total current liabilities indicate
A) cash on hand
B) net working capital
C) liquid assets
D) equity.
Answer: B
◉ How should supervisors behave toward informal leaders in the
organization
A) maintain a positive attitude toward informal leaders
B) ensure informal leaders remain st a moderately low status within
the work group
, C) grant informal leaders occasional favors
D) pass informs on to informal leaders before giving it to formal
leaders.
Answer: A
◉ Budgets for new capital expenditures include requests for
A) infrastructure
B) wage adjustments
C) new employee insurance plans
D) new gain sharing agreements with physicians.
Answer: A
◉ The Capital Asset Pricing Model (CAPM), an equilibrium model,
describes the relationship between which of the following
A) market risk and required rate of return
B) expected rate of return and actual rate of return
C) price and market risk
D) expected rate of return and required rate of return.
Answer: A
◉ What is the most common operating indicator used to measure
overall staff productivity