WGU C802 TASK 1 EXAMS SET WITH
COMPLETE ANSWERS AND EXPERT
REVIEW
◉ Profitability
Answer: The degree to which the revenues generated by a product
or service exceed the costs of producing that product or service.
◉ Accountable Care Organization (ACO)
Answer: A payment and healthcare delivery model in which a
group of healthcare providers work together to coordinate a
patient's care, improve quality, and reduce costs.
◉ Acquisition
Answer: The purchase (or merger) of an existing organization.
Through this method of growth, the acquiring organization gains
an established product in the market and may also reduce
competition by eliminating one of its competitors.
◉ Affordable Care Act (ACA)
Answer: A law passed by the federal government in 2010 that
seeks to decrease the number of uninsured to improve health
outcomes and streamline the delivery of healthcare.
◉ Diversification
,Answer: Strategic expansion into different businesses.
◉ Horizontal Expansion
Answer: The acquisition and/or merger of two or more
organizations that produce similar products or services.
◉ Internal Expansion
Answer: A method of business growth that builds on an
organization's capabilities and resources and may include
developing new products and services, launching marketing
efforts to increase market share, or introducing existing products
into new markets.
◉ Most-Favored-Nation Clause
Answer: A clause in a contract between a provider and an
insurance company that guarantees that the provider will charge
the insurance company prices that are lower than the prices the
provider charges all other insurance companies it does business
with.
◉ Networks
Answer: Joint ventures and alliances between established
organizations for growth purposes. By forming networks,
organizations can enter a market more quickly and with minimal
risk.
◉ Related Diversification
, Answer: Expansion into a different business that uses similar
technologies (also called concentric diversification) or adds new
products or services to an organization's existing offerings (also
called horizontal diversification).
◉ Transaction Cost Economics
Answer: A theory that suggests organizational boundaries are
influenced by organizations' efforts to mitigate the costs of
transactions and contractual hazards that are incurred by buying
and selling assets and services.
◉ Transfer Pricing
Answer: The "price" charged for intra-organization trade. (ex. the
sale or transfer of goods and services within an organization).
◉ Unrelated (conglomerate or lateral) Diversification
Answer: The addition of new products or services that have little
or no overlap with an organization's current products/services
and assets.
◉ Vertical Expansion
Answer: Acquisition of a business that is a source of supplies for
the acquiring organization (backward expansion) or that
purchases from the acquiring organization (forward expansion).
◉ Vertical Integration
COMPLETE ANSWERS AND EXPERT
REVIEW
◉ Profitability
Answer: The degree to which the revenues generated by a product
or service exceed the costs of producing that product or service.
◉ Accountable Care Organization (ACO)
Answer: A payment and healthcare delivery model in which a
group of healthcare providers work together to coordinate a
patient's care, improve quality, and reduce costs.
◉ Acquisition
Answer: The purchase (or merger) of an existing organization.
Through this method of growth, the acquiring organization gains
an established product in the market and may also reduce
competition by eliminating one of its competitors.
◉ Affordable Care Act (ACA)
Answer: A law passed by the federal government in 2010 that
seeks to decrease the number of uninsured to improve health
outcomes and streamline the delivery of healthcare.
◉ Diversification
,Answer: Strategic expansion into different businesses.
◉ Horizontal Expansion
Answer: The acquisition and/or merger of two or more
organizations that produce similar products or services.
◉ Internal Expansion
Answer: A method of business growth that builds on an
organization's capabilities and resources and may include
developing new products and services, launching marketing
efforts to increase market share, or introducing existing products
into new markets.
◉ Most-Favored-Nation Clause
Answer: A clause in a contract between a provider and an
insurance company that guarantees that the provider will charge
the insurance company prices that are lower than the prices the
provider charges all other insurance companies it does business
with.
◉ Networks
Answer: Joint ventures and alliances between established
organizations for growth purposes. By forming networks,
organizations can enter a market more quickly and with minimal
risk.
◉ Related Diversification
, Answer: Expansion into a different business that uses similar
technologies (also called concentric diversification) or adds new
products or services to an organization's existing offerings (also
called horizontal diversification).
◉ Transaction Cost Economics
Answer: A theory that suggests organizational boundaries are
influenced by organizations' efforts to mitigate the costs of
transactions and contractual hazards that are incurred by buying
and selling assets and services.
◉ Transfer Pricing
Answer: The "price" charged for intra-organization trade. (ex. the
sale or transfer of goods and services within an organization).
◉ Unrelated (conglomerate or lateral) Diversification
Answer: The addition of new products or services that have little
or no overlap with an organization's current products/services
and assets.
◉ Vertical Expansion
Answer: Acquisition of a business that is a source of supplies for
the acquiring organization (backward expansion) or that
purchases from the acquiring organization (forward expansion).
◉ Vertical Integration
