HCM
HCM EXIT EXAM QUESTIONS AND
ANSWERS UPDATED (2024/2025)
(VERIFIED ANSWERS)
Which financial statement presents the activity of the business for the
previous time period? - ANS ✓Statement of cash flows
Which financial statement shows the company's use and acquisition of
funds for a given period of time? - ANS ✓Income statement
Opportunity cost - ANS ✓Return of alternative investment of funds
Mrs. Smith purchases taxable bonds that earn 8% interests. If Mrs. Smith's
tax rate is 28%, what is the interest's rate? - ANS ✓5.76%
Mrs. Smith purchases taxable bonds that earn 9% interests. If Mrs. Smith's
tax rate is 28%, what is the interest's rate? - ANS ✓6.48%
What is the primary reason for quality management? - ANS ✓Continuous
improvement
What are the common components of quality management? - ANS
✓Measurement, assessment, and improvement
Measure that could be used by a rehabilitation facility to evaluate the
STRUCTURAL aspects - ANS ✓Number of certified nursing assistants on each
shift
1
HCM Exit
,HCM
Percentage of patients who develop deep vein thrombosis following a
surgical procedure - ANS ✓Outcome measure
A PROCESS measure of performance for a hospital emergency department -
ANS ✓Percent of time staff confirm patient ID before giving medication
For the performance measure, "Percent of staff who comply with hand
hygiene requirements" what population would be included in the
numerator? - ANS ✓Number of staff observed in compliance with hand hygiene
requirements.
A PROCESS measure that could be used by a family practice clinic to
evaluate the quality of care provided to adult patients with asthma. - ANS
✓Percent of patients that receive instructions in the use of their medications
What are two types of variations in quality management? - ANS ✓Common
cause variation (predictable) and Special cause variation (Abnormal and not
predictable).
The law of demand - ANS ✓States that if all else is equal (ceteris paribus), as
price falls, the quantity demanded rises, and as price rises, the quantity
demanded falls.
Product A raises the price of their product by 4% and sales decline by 4%.
Sales of product B also decrease by 3%. Are products A and B complements
or substitutes? - ANS ✓Complements
What happens to inferior goods as incomes rise and price remains
constant? - ANS ✓Demand falls
Market elasticity is estimated to be -0.2. My organization enjoys a 10%
share of the market. What is my firm (organizational) elasticity? - ANS ✓-2.0
2
HCM Exit
, HCM
Cost benefit analysis is a form of utilitarianism - ANS ✓True
Quality Adjusted Life Year (QALY) - ANS ✓the time spent in a health state (for
a particular disease with specific symptom severity) multiplied by the unity score
of that state
Economies of scale - ANS ✓Large firms that have a cost advantage; Firms that
produce several kinds of goods and services at a lower cost than firms that
produce one
Economies of scope - ANS ✓Multiproduct firms that have a cost advantage
When large companies have lower costs because they spread fixed costs
over more products: - ANS ✓Economies of Scale
Fee for service payment schemes incentivize physicians to which of the
following?
Reduce the number of days a patient stays in the hospital
Perform only those diagnostic tests that are absolutely necessary
Redesign inefficient processes and practices
None of the above - ANS ✓None of the above
Which of these mechanisms is not used by insurance companies to contain
costs? - ANS ✓Fee-for-service reimbursements
In order for diversification to be useful in managing risk, potential payoffs
must be: - ANS ✓Negatively coorelated
We discussed conditions that may contribute to market failure. The
condition whereby consumers are willing, -but unable - to make market
transactions is what? - ANS ✓Incomplete market
3
HCM Exit
HCM EXIT EXAM QUESTIONS AND
ANSWERS UPDATED (2024/2025)
(VERIFIED ANSWERS)
Which financial statement presents the activity of the business for the
previous time period? - ANS ✓Statement of cash flows
Which financial statement shows the company's use and acquisition of
funds for a given period of time? - ANS ✓Income statement
Opportunity cost - ANS ✓Return of alternative investment of funds
Mrs. Smith purchases taxable bonds that earn 8% interests. If Mrs. Smith's
tax rate is 28%, what is the interest's rate? - ANS ✓5.76%
Mrs. Smith purchases taxable bonds that earn 9% interests. If Mrs. Smith's
tax rate is 28%, what is the interest's rate? - ANS ✓6.48%
What is the primary reason for quality management? - ANS ✓Continuous
improvement
What are the common components of quality management? - ANS
✓Measurement, assessment, and improvement
Measure that could be used by a rehabilitation facility to evaluate the
STRUCTURAL aspects - ANS ✓Number of certified nursing assistants on each
shift
1
HCM Exit
,HCM
Percentage of patients who develop deep vein thrombosis following a
surgical procedure - ANS ✓Outcome measure
A PROCESS measure of performance for a hospital emergency department -
ANS ✓Percent of time staff confirm patient ID before giving medication
For the performance measure, "Percent of staff who comply with hand
hygiene requirements" what population would be included in the
numerator? - ANS ✓Number of staff observed in compliance with hand hygiene
requirements.
A PROCESS measure that could be used by a family practice clinic to
evaluate the quality of care provided to adult patients with asthma. - ANS
✓Percent of patients that receive instructions in the use of their medications
What are two types of variations in quality management? - ANS ✓Common
cause variation (predictable) and Special cause variation (Abnormal and not
predictable).
The law of demand - ANS ✓States that if all else is equal (ceteris paribus), as
price falls, the quantity demanded rises, and as price rises, the quantity
demanded falls.
Product A raises the price of their product by 4% and sales decline by 4%.
Sales of product B also decrease by 3%. Are products A and B complements
or substitutes? - ANS ✓Complements
What happens to inferior goods as incomes rise and price remains
constant? - ANS ✓Demand falls
Market elasticity is estimated to be -0.2. My organization enjoys a 10%
share of the market. What is my firm (organizational) elasticity? - ANS ✓-2.0
2
HCM Exit
, HCM
Cost benefit analysis is a form of utilitarianism - ANS ✓True
Quality Adjusted Life Year (QALY) - ANS ✓the time spent in a health state (for
a particular disease with specific symptom severity) multiplied by the unity score
of that state
Economies of scale - ANS ✓Large firms that have a cost advantage; Firms that
produce several kinds of goods and services at a lower cost than firms that
produce one
Economies of scope - ANS ✓Multiproduct firms that have a cost advantage
When large companies have lower costs because they spread fixed costs
over more products: - ANS ✓Economies of Scale
Fee for service payment schemes incentivize physicians to which of the
following?
Reduce the number of days a patient stays in the hospital
Perform only those diagnostic tests that are absolutely necessary
Redesign inefficient processes and practices
None of the above - ANS ✓None of the above
Which of these mechanisms is not used by insurance companies to contain
costs? - ANS ✓Fee-for-service reimbursements
In order for diversification to be useful in managing risk, potential payoffs
must be: - ANS ✓Negatively coorelated
We discussed conditions that may contribute to market failure. The
condition whereby consumers are willing, -but unable - to make market
transactions is what? - ANS ✓Incomplete market
3
HCM Exit
