LSUS MHA 706 Midterm Exam Questions and Answers
Question 1
The major provisions of the Patient Protection & Affordable Care Act of 2010 were?
Correct Answer
-Banning of preexisting condition coverage limitations
-Free preventative care
-Medicaid expansion
Question 2
Which of the following statement(s) about the finance department a t large healthcare organizations is/are correct?
Correct Answer
-The CFO typically reports directly to the chief executive officer (CEO)
-The CFO is usually assisted by a comptroller and treasurer
-The department is headed by the chief financial officer (CFO) (sometimes called the vice president-finance)
Question 3
In a not-for-profit hospital, the following are example(s) of a stakeholder.
Correct Answer
-Vendor
-Employee
-Community
Page 1 of 28
,Question 4
Stockholders have all of the following right(s)...
Correct Answer
-Claim on residual liquidation proceeds
-Right of control
-A possible dividend and/or capital gains
Question 5
Which of the following statements about finance accounting, and financial management is most correct?
Correct Answer
Financial management provides the theory, concepts, and tools necessary to help managers make better financial
decisions.
Question 6
External reporting
Correct Answer
What is a DISADVANTAGE of being a corporation?
Page 2 of 28
, Question 7
Facilities management
Correct Answer
Which of the following are not finance activities?
Question 8
What is NOT a advantage of proprietorship?
Correct Answer
Unlimited liability
Question 9
A not-for-profit corporation can also be called a 529(b).
Correct Answer
False
Question 10
The primary goal of investor-owned corporations is shareholder wealth maximization.
Correct Answer
True
Page 3 of 28
Question 1
The major provisions of the Patient Protection & Affordable Care Act of 2010 were?
Correct Answer
-Banning of preexisting condition coverage limitations
-Free preventative care
-Medicaid expansion
Question 2
Which of the following statement(s) about the finance department a t large healthcare organizations is/are correct?
Correct Answer
-The CFO typically reports directly to the chief executive officer (CEO)
-The CFO is usually assisted by a comptroller and treasurer
-The department is headed by the chief financial officer (CFO) (sometimes called the vice president-finance)
Question 3
In a not-for-profit hospital, the following are example(s) of a stakeholder.
Correct Answer
-Vendor
-Employee
-Community
Page 1 of 28
,Question 4
Stockholders have all of the following right(s)...
Correct Answer
-Claim on residual liquidation proceeds
-Right of control
-A possible dividend and/or capital gains
Question 5
Which of the following statements about finance accounting, and financial management is most correct?
Correct Answer
Financial management provides the theory, concepts, and tools necessary to help managers make better financial
decisions.
Question 6
External reporting
Correct Answer
What is a DISADVANTAGE of being a corporation?
Page 2 of 28
, Question 7
Facilities management
Correct Answer
Which of the following are not finance activities?
Question 8
What is NOT a advantage of proprietorship?
Correct Answer
Unlimited liability
Question 9
A not-for-profit corporation can also be called a 529(b).
Correct Answer
False
Question 10
The primary goal of investor-owned corporations is shareholder wealth maximization.
Correct Answer
True
Page 3 of 28
