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NR533 Week 7 Business Plan
Assignment – Financial Management in
Healthcare Organizations –
Chamberlain College of Nursing –
Verified Submission | 2025/2026 Edition
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++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Original Practice Question 1
A nurse entrepreneur is preparing a business plan for a new outpatient clinic. Which section of
the business plan should contain projected revenue, expenses, and profitability?
A. Executive Summary
B. Marketing Plan
C. Financial Plan
D. Operations Plan
Correct Answer: C. Financial Plan
Solution:
The financial plan includes projected income, expenses, cash flow, break-even analysis, and
profitability estimates. It demonstrates the financial viability of the proposed healthcare
business.
Original Practice Question 2
Which financial statement provides information about an organization's assets, liabilities, and
owner's equity at a specific point in time?
,A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Budget Report
Correct Answer: B. Balance Sheet
Solution:
The balance sheet presents the organization's financial position by showing assets, liabilities,
and equity on a specific date.
Original Practice Question 3
A clinic has fixed costs of $100,000 annually. The average contribution margin per patient visit is
$50. How many patient visits are required to break even?
A. 1,000
B. 1,500
C. 2,000
D. 2,500
Correct Answer: C. 2,000
Solution:
Break-even point = Fixed Costs ÷ Contribution Margin
= $100,000 ÷ $50
= 2,000 patient visits
Original Practice Question 4
What is the primary purpose of a cash flow projection in a healthcare business plan?
A. To estimate employee satisfaction
B. To determine future staffing levels only
C. To predict the movement of cash into and out of the organization
D. To calculate patient outcomes
Correct Answer: C. To predict the movement of cash into and out of the organization
,Solution:
Cash flow projections help determine whether sufficient cash will be available to meet
operational expenses and obligations.
Original Practice Question 5
Which budgeting method starts from zero and requires justification of every expense?
A. Flexible Budgeting
B. Incremental Budgeting
C. Capital Budgeting
D. Zero-Based Budgeting
Correct Answer: D. Zero-Based Budgeting
Solution:
Zero-based budgeting requires managers to justify all expenditures during each budgeting cycle
regardless of previous budgets.
Original Practice Question 6
A healthcare organization purchases an MRI machine for $1 million. This purchase is classified
as:
A. Variable Cost
B. Capital Expenditure
C. Operating Expense
D. Indirect Cost
Correct Answer: B. Capital Expenditure
Solution:
Large investments in equipment and facilities are capital expenditures because they provide
benefits over multiple years.
Original Practice Question 7
Which ratio best measures an organization's ability to meet short-term obligations?
, A. Current Ratio
B. Debt Ratio
C. Return on Investment Ratio
D. Profit Margin Ratio
Correct Answer: A. Current Ratio
Solution:
The current ratio compares current assets to current liabilities and indicates liquidity.
Original Practice Question 8
What is the main purpose of a break-even analysis?
A. Determine employee productivity
B. Calculate tax liability
C. Identify the point at which revenues equal costs
D. Evaluate patient satisfaction
Correct Answer: C. Identify the point at which revenues equal costs
Solution:
Break-even analysis determines the volume of services required before the organization begins
generating profit.
Original Practice Question 9
Which of the following is considered a fixed cost for a healthcare clinic?
A. Medical supplies used per patient
B. Laboratory tests ordered
C. Physician bonuses based on productivity
D. Building rent
Correct Answer: D. Building rent
Solution:
Fixed costs remain relatively constant regardless of patient volume.
Original Practice Question 10
NR533 Week 7 Business Plan
Assignment – Financial Management in
Healthcare Organizations –
Chamberlain College of Nursing –
Verified Submission | 2025/2026 Edition
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Original Practice Question 1
A nurse entrepreneur is preparing a business plan for a new outpatient clinic. Which section of
the business plan should contain projected revenue, expenses, and profitability?
A. Executive Summary
B. Marketing Plan
C. Financial Plan
D. Operations Plan
Correct Answer: C. Financial Plan
Solution:
The financial plan includes projected income, expenses, cash flow, break-even analysis, and
profitability estimates. It demonstrates the financial viability of the proposed healthcare
business.
Original Practice Question 2
Which financial statement provides information about an organization's assets, liabilities, and
owner's equity at a specific point in time?
,A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Budget Report
Correct Answer: B. Balance Sheet
Solution:
The balance sheet presents the organization's financial position by showing assets, liabilities,
and equity on a specific date.
Original Practice Question 3
A clinic has fixed costs of $100,000 annually. The average contribution margin per patient visit is
$50. How many patient visits are required to break even?
A. 1,000
B. 1,500
C. 2,000
D. 2,500
Correct Answer: C. 2,000
Solution:
Break-even point = Fixed Costs ÷ Contribution Margin
= $100,000 ÷ $50
= 2,000 patient visits
Original Practice Question 4
What is the primary purpose of a cash flow projection in a healthcare business plan?
A. To estimate employee satisfaction
B. To determine future staffing levels only
C. To predict the movement of cash into and out of the organization
D. To calculate patient outcomes
Correct Answer: C. To predict the movement of cash into and out of the organization
,Solution:
Cash flow projections help determine whether sufficient cash will be available to meet
operational expenses and obligations.
Original Practice Question 5
Which budgeting method starts from zero and requires justification of every expense?
A. Flexible Budgeting
B. Incremental Budgeting
C. Capital Budgeting
D. Zero-Based Budgeting
Correct Answer: D. Zero-Based Budgeting
Solution:
Zero-based budgeting requires managers to justify all expenditures during each budgeting cycle
regardless of previous budgets.
Original Practice Question 6
A healthcare organization purchases an MRI machine for $1 million. This purchase is classified
as:
A. Variable Cost
B. Capital Expenditure
C. Operating Expense
D. Indirect Cost
Correct Answer: B. Capital Expenditure
Solution:
Large investments in equipment and facilities are capital expenditures because they provide
benefits over multiple years.
Original Practice Question 7
Which ratio best measures an organization's ability to meet short-term obligations?
, A. Current Ratio
B. Debt Ratio
C. Return on Investment Ratio
D. Profit Margin Ratio
Correct Answer: A. Current Ratio
Solution:
The current ratio compares current assets to current liabilities and indicates liquidity.
Original Practice Question 8
What is the main purpose of a break-even analysis?
A. Determine employee productivity
B. Calculate tax liability
C. Identify the point at which revenues equal costs
D. Evaluate patient satisfaction
Correct Answer: C. Identify the point at which revenues equal costs
Solution:
Break-even analysis determines the volume of services required before the organization begins
generating profit.
Original Practice Question 9
Which of the following is considered a fixed cost for a healthcare clinic?
A. Medical supplies used per patient
B. Laboratory tests ordered
C. Physician bonuses based on productivity
D. Building rent
Correct Answer: D. Building rent
Solution:
Fixed costs remain relatively constant regardless of patient volume.
Original Practice Question 10
