MHA 706 Module 1: Parts 1 & 2 Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
This is the practice of finance, Healthcare finance
including both accounting and
financial management, within
health
services (provider) organizations
_______ concerns the Accounting
measurement, in Financial management
financial (dollar) terms, of events
that
reflect the resources, operations,
and financing of an organization.
_______ ______provides the
theory,
concepts, and tools necessary to
help managers make better
financial
decisions.
,-Obtains financing from the Business
marketplace.
-Uses the funds to buy assets.
-Operates the assets to provide
goods or services.
-Sells the goods or services to
create revenue
These are all the characteristics of
a
...?
_____ _____ refers to an Pure Charity
undertaking for Business
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.
_______ Maximize profits
The primary role of finance within efficiency (and hence value)
any organization is to plan for,
acquire, and utilize resources to
maximize the ________ of the
enterprise.
,-Planning and budgeting Finance activities
-Financial reporting
-Capital investment decisions
-Financing decisions
-Working capital management
-Contract management
-Financial risk management
These are all...?
The finance activities listed on the 1. Cost minimization
previous slide can be summarized 2. Cash sufficiency
by 3. Capital access
the four Cs: 4. Control of financial resources
1.
2.
3.
4.
There are three major categories ■Proprietorship (sole proprietorship)
of ■Partnership
business organization (legal forms ■Corporation (HCA, Tenet)
of
businesses).
These are...
, Advantages Proprietorships and Partnerships
■Ease of formation
■Subject to few regulations
■No corporate income taxes
Disadvantages
■Limited life
■Difficult to transfer ownership
■Unlimited liability
■Difficult to raise capital
This describes...?
Advantages Corporations
■Unlimited life
■Easy transfer of ownership
■Limited liability
■Ease of raising capital
Disadvantages
■Cost of formation and reporting
■Double (or triple) taxation for
investor-owned corporations
This describes...?
■Partners share general business Limited liability partnership (LLP)
liability
■But partners are liable only for
their
own malpractice actions
This is a...?
■Members are taxed like partners Limited liability company (LLC)
■Liability like stockholders
This is a...?
Questions and Answers with Verified
Solutions | Latest Updated 2026
This is the practice of finance, Healthcare finance
including both accounting and
financial management, within
health
services (provider) organizations
_______ concerns the Accounting
measurement, in Financial management
financial (dollar) terms, of events
that
reflect the resources, operations,
and financing of an organization.
_______ ______provides the
theory,
concepts, and tools necessary to
help managers make better
financial
decisions.
,-Obtains financing from the Business
marketplace.
-Uses the funds to buy assets.
-Operates the assets to provide
goods or services.
-Sells the goods or services to
create revenue
These are all the characteristics of
a
...?
_____ _____ refers to an Pure Charity
undertaking for Business
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.
_______ Maximize profits
The primary role of finance within efficiency (and hence value)
any organization is to plan for,
acquire, and utilize resources to
maximize the ________ of the
enterprise.
,-Planning and budgeting Finance activities
-Financial reporting
-Capital investment decisions
-Financing decisions
-Working capital management
-Contract management
-Financial risk management
These are all...?
The finance activities listed on the 1. Cost minimization
previous slide can be summarized 2. Cash sufficiency
by 3. Capital access
the four Cs: 4. Control of financial resources
1.
2.
3.
4.
There are three major categories ■Proprietorship (sole proprietorship)
of ■Partnership
business organization (legal forms ■Corporation (HCA, Tenet)
of
businesses).
These are...
, Advantages Proprietorships and Partnerships
■Ease of formation
■Subject to few regulations
■No corporate income taxes
Disadvantages
■Limited life
■Difficult to transfer ownership
■Unlimited liability
■Difficult to raise capital
This describes...?
Advantages Corporations
■Unlimited life
■Easy transfer of ownership
■Limited liability
■Ease of raising capital
Disadvantages
■Cost of formation and reporting
■Double (or triple) taxation for
investor-owned corporations
This describes...?
■Partners share general business Limited liability partnership (LLP)
liability
■But partners are liable only for
their
own malpractice actions
This is a...?
■Members are taxed like partners Limited liability company (LLC)
■Liability like stockholders
This is a...?
