LSUS MHA 706 MIDTERM EXAM SCRIPT
2026 HEALTH POLICY AND
ORGANIZATIONAL MANAGEMENT STUDY
GUIDE
◉ Accounting
Answer: concerns the measurement, in financial (dollar) terms, of
events that reflect the resources, operations, and financing of an
organization
◉ Financial managment
Answer: provides the theory, concepts, and tools necessary to help
managers make better financial decisions
◉ Business characteristics
Answer: -obtains financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
, ◉ Pure Charity
Answer: refers to an undertaking for a charitable purpose only. The
relief of poverty, advancement of education, advancement of religion,
promotion of health, the obtaining of good government, and the
accomplishment of that which is beneficial to the community in any
other respect are pure charities.
◉ Primary role of finance
Answer: is to plan for, acquire, and utilize resources to maximize the
efficiency (and hence value) of the enterprise.
◉ The Four C's
Answer: cost minimization
cash sufficiency
capital access
control of financial resources
◉ 3 categories of business organizations
Answer: proprietorship, partnership, and corporation (there are
also hybrid forms)
◉ Advantages of Proprietorships and Partnerships
Answer: ease of formation, subject to few regulations, and no
corporate income taxes.
2026 HEALTH POLICY AND
ORGANIZATIONAL MANAGEMENT STUDY
GUIDE
◉ Accounting
Answer: concerns the measurement, in financial (dollar) terms, of
events that reflect the resources, operations, and financing of an
organization
◉ Financial managment
Answer: provides the theory, concepts, and tools necessary to help
managers make better financial decisions
◉ Business characteristics
Answer: -obtains financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
, ◉ Pure Charity
Answer: refers to an undertaking for a charitable purpose only. The
relief of poverty, advancement of education, advancement of religion,
promotion of health, the obtaining of good government, and the
accomplishment of that which is beneficial to the community in any
other respect are pure charities.
◉ Primary role of finance
Answer: is to plan for, acquire, and utilize resources to maximize the
efficiency (and hence value) of the enterprise.
◉ The Four C's
Answer: cost minimization
cash sufficiency
capital access
control of financial resources
◉ 3 categories of business organizations
Answer: proprietorship, partnership, and corporation (there are
also hybrid forms)
◉ Advantages of Proprietorships and Partnerships
Answer: ease of formation, subject to few regulations, and no
corporate income taxes.
