MHA 706 Financial Management Midterm – Questions With Complete Solutions
Question: 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: Which of the following statement(s) about the
finance department at 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: In a not-for-profit hospital, the following are
example(s) of a stakeholder.
Correct answer: Vendor, Employee, Community
Question: 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: 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: What is a DISADVANTAGE of being a
corporation?
Correct answer: External reporting
Question: Which of the following are not finance activities?
Correct answer: Facilities management
Question: What is NOT an advantage of proprietorship?
Correct answer: Unlimited liability
Question: A not-for-profit corporation can also be called a
529(b).
Correct answer: False
Question: The primary goal of investor-owned corporations is
shareholder wealth maximization.
Correct answer: True
Question: Copayments
Correct answer: The fixed amount for a covered service that
the insurer mandates that the patient pay to the provider before the patient receives service from the provider
Question: Coinsurance
Correct answer: Requires an individual to pay for a certain
percentage of the eligible medical expenses
Question: Adverse selection
Correct answer: Individuals at greater risk of needing health
care are more likely to purchase insurance
Question: Deductibles
Correct answer: The amount that must be paid out of pocket
by the policyholder before an insurance provider will pay any expenses
Question: Moral hazard
Correct answer: The risk of overuse of health services
because the insured does not bear the full cost of the consequences
Question: Medicare Part B
Correct answer: Covers physician services, ambulatory
surgical services, outpatient services, and certain other miscellaneous services
Question: Medicare Part A
Correct answer: Covers hospital and some skilled nursing
coverage