MHA 706 FINANCIAL MANAGEMENT MIDTERM EXAM
2026 QUESTIONS AND CORRECT ANSWERS (100%
CORRECT VERIFIED ANSWERS)
ambulatory or outpatient care - CORRECT ANSWER ✔✔ - encompasses services
provided to non institutionalized patients
long-term care - CORRECT ANSWER ✔✔ - healthcare services that cover an
extended period of time, often with a focus on mental health
skilled nursing facilities - CORRECT ANSWER ✔✔ - provide the level of care closest
to hospital care
intermediate care facilities - CORRECT ANSWER ✔✔ - intended for individuals
who do not require hospital or SNF care but whose mental or physical conditions
require daily continuity of one or more medical services
residential care facilities - CORRECT ANSWER ✔✔ - sheltered environments that
do not provide professional healthcare services
integrated delivery system - CORRECT ANSWER ✔✔ - a single organization that
offers a broad range of healthcare services in a unified manner
licensure - CORRECT ANSWER ✔✔ - the granting or regulation of licenses, as for
professionals
Pg. 1
,certificate of need - CORRECT ANSWER ✔✔ - An endorsement required by
numerous states before the construction of a new health care facility will be
approved
professional liability - CORRECT ANSWER ✔✔ - protects professionals such as
accountants, lawyers and physicians against negligence and other claims initiated
by their clients
prorietorship - CORRECT ANSWER ✔✔ - a simple form of business owned by a
single individual
partnership - CORRECT ANSWER ✔✔ - a non-incorporated business entity that is
created by two or more individuals
corporation - CORRECT ANSWER ✔✔ - a legal business entity that is separate and
distinct from its owners and managers
investment liquidity - CORRECT ANSWER ✔✔ - the ability to sell an investment
quickly and at a fair price
limited partnership - CORRECT ANSWER ✔✔ - a partnership form of organization
with general partners that have control and unlimited liability and limited
partners that have no control and limited liability
limited liability partnership - CORRECT ANSWER ✔✔ - a partnership form of
organization that limits the professional liability of its partners
Pg. 2
, limited liability company - CORRECT ANSWER ✔✔ - a corporate form of
organization that combines some features of a partnership with others of a
corporation
professional corporation - CORRECT ANSWER ✔✔ - a type of corporate business
organization in which owners/managers still have professional liability
S corporation - CORRECT ANSWER ✔✔ - a corporation with a limited number of
stockholders that is taxed as a proprietorship or partnership
primary market - CORRECT ANSWER ✔✔ - the market in which newly issued
securities are sold for the first time
secondary market - CORRECT ANSWER ✔✔ - the market in which previously
issued securities are sold
publicly held company - CORRECT ANSWER ✔✔ - a corporation whose shares are
held by the general public
healthcare finance - CORRECT ANSWER ✔✔ - the accounting and financial
management principles and practices used within health services organizations to
ensure the financial well-being of the enterprise
healthcare sector - CORRECT ANSWER ✔✔ - consists of a diverse collection of
industries that involve the healthcare of the population
Pg. 3
2026 QUESTIONS AND CORRECT ANSWERS (100%
CORRECT VERIFIED ANSWERS)
ambulatory or outpatient care - CORRECT ANSWER ✔✔ - encompasses services
provided to non institutionalized patients
long-term care - CORRECT ANSWER ✔✔ - healthcare services that cover an
extended period of time, often with a focus on mental health
skilled nursing facilities - CORRECT ANSWER ✔✔ - provide the level of care closest
to hospital care
intermediate care facilities - CORRECT ANSWER ✔✔ - intended for individuals
who do not require hospital or SNF care but whose mental or physical conditions
require daily continuity of one or more medical services
residential care facilities - CORRECT ANSWER ✔✔ - sheltered environments that
do not provide professional healthcare services
integrated delivery system - CORRECT ANSWER ✔✔ - a single organization that
offers a broad range of healthcare services in a unified manner
licensure - CORRECT ANSWER ✔✔ - the granting or regulation of licenses, as for
professionals
Pg. 1
,certificate of need - CORRECT ANSWER ✔✔ - An endorsement required by
numerous states before the construction of a new health care facility will be
approved
professional liability - CORRECT ANSWER ✔✔ - protects professionals such as
accountants, lawyers and physicians against negligence and other claims initiated
by their clients
prorietorship - CORRECT ANSWER ✔✔ - a simple form of business owned by a
single individual
partnership - CORRECT ANSWER ✔✔ - a non-incorporated business entity that is
created by two or more individuals
corporation - CORRECT ANSWER ✔✔ - a legal business entity that is separate and
distinct from its owners and managers
investment liquidity - CORRECT ANSWER ✔✔ - the ability to sell an investment
quickly and at a fair price
limited partnership - CORRECT ANSWER ✔✔ - a partnership form of organization
with general partners that have control and unlimited liability and limited
partners that have no control and limited liability
limited liability partnership - CORRECT ANSWER ✔✔ - a partnership form of
organization that limits the professional liability of its partners
Pg. 2
, limited liability company - CORRECT ANSWER ✔✔ - a corporate form of
organization that combines some features of a partnership with others of a
corporation
professional corporation - CORRECT ANSWER ✔✔ - a type of corporate business
organization in which owners/managers still have professional liability
S corporation - CORRECT ANSWER ✔✔ - a corporation with a limited number of
stockholders that is taxed as a proprietorship or partnership
primary market - CORRECT ANSWER ✔✔ - the market in which newly issued
securities are sold for the first time
secondary market - CORRECT ANSWER ✔✔ - the market in which previously
issued securities are sold
publicly held company - CORRECT ANSWER ✔✔ - a corporation whose shares are
held by the general public
healthcare finance - CORRECT ANSWER ✔✔ - the accounting and financial
management principles and practices used within health services organizations to
ensure the financial well-being of the enterprise
healthcare sector - CORRECT ANSWER ✔✔ - consists of a diverse collection of
industries that involve the healthcare of the population
Pg. 3
