MHA 706 Module 1 Exam Questions +
Verified Answers 100% correct, Update
2026
Healthcare Finance - Correct Answers ✅is the practice of
finance, including both accounting and financial
management, within health services (provider) organizations
Accounting - Correct Answers ✅concerns the
measurement, in financial (dollar) terms, of events that
reflect the resources, operations, and financing of an
organization
Financial managment - Correct Answers ✅provides the
theory, concepts, and tools necessary to help managers
make better financial decisions
Business characteristics - Correct Answers ✅-obtains
financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
Pure Charity - Correct Answers ✅refers to an undertaking
for a charitable purpose only. The relief of poverty,
advancement of education, advancement of religion,
promotion of health, the obtaining of good government, and
the accomplishment of that which is beneficial to the
community in any other respect are pure charities.
, MHA 706 Module 1 Exam Questions +
Verified Answers 100% correct, Update
2026
Primary role of finance - Correct Answers ✅is to plan for,
acquire, and utilize resources to maximize the efficiency (and
hence value) of the enterprise.
The Four C's - Correct Answers ✅cost minimization
cash sufficiency
capital access
control of financial resources
3 categories of business organizations - Correct Answers
✅proprietorship, partnership, and corporation (there are also
hybrid forms)
Advantages of Proprietorships and Partnerships - Correct
Answers ✅ease of formation, subject to few regulations,
and no corporate income taxes.
Disadvantages to proprietorships and partnerships - Correct
Answers ✅limited life, difficult to transfer ownership,
unlimited liability, difficult to raise capital
Advantages to corporations - Correct Answers ✅unlimited
life, easy transfer of ownership, ease of raising capital
Verified Answers 100% correct, Update
2026
Healthcare Finance - Correct Answers ✅is the practice of
finance, including both accounting and financial
management, within health services (provider) organizations
Accounting - Correct Answers ✅concerns the
measurement, in financial (dollar) terms, of events that
reflect the resources, operations, and financing of an
organization
Financial managment - Correct Answers ✅provides the
theory, concepts, and tools necessary to help managers
make better financial decisions
Business characteristics - Correct Answers ✅-obtains
financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
Pure Charity - Correct Answers ✅refers to an undertaking
for a charitable purpose only. The relief of poverty,
advancement of education, advancement of religion,
promotion of health, the obtaining of good government, and
the accomplishment of that which is beneficial to the
community in any other respect are pure charities.
, MHA 706 Module 1 Exam Questions +
Verified Answers 100% correct, Update
2026
Primary role of finance - Correct Answers ✅is to plan for,
acquire, and utilize resources to maximize the efficiency (and
hence value) of the enterprise.
The Four C's - Correct Answers ✅cost minimization
cash sufficiency
capital access
control of financial resources
3 categories of business organizations - Correct Answers
✅proprietorship, partnership, and corporation (there are also
hybrid forms)
Advantages of Proprietorships and Partnerships - Correct
Answers ✅ease of formation, subject to few regulations,
and no corporate income taxes.
Disadvantages to proprietorships and partnerships - Correct
Answers ✅limited life, difficult to transfer ownership,
unlimited liability, difficult to raise capital
Advantages to corporations - Correct Answers ✅unlimited
life, easy transfer of ownership, ease of raising capital
