1 WGU C432 Healthcare Management and Strategy Exam/ Practice Exam Questions with Correct Verified Answers/ Rated A+
Accountable Care Organization (ACO) - ANSWER - 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
Accounts receivable - ANSWER - monies customers owe to a business for goods and services they have received
Acid/quick ratio - ANSWER - combined amount of an organization's cash and marketable securities divided by its current liabilities. examines an organization's ability to pay its current liabilities with cash and cash equivalents
Activity ratios - ANSWER - measures how efficiently an organization uses its resources
Affordable Care Act (ACA) - ANSWER - 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
Annual budget process - ANSWER - yearly generation of action plans and budgets to drive implementation of strategies and subsequent control of problems and evaluation of progress
Asset turnover - ANSWER - an organization's operating revenues divided by its total assets. identifies the amount of money each dollar of assets creates over a defined period
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2 Horizontal diversification - ANSWER - adding new products or services to an organization's existing offerings
Societal environment - ANSWER - public and socioeconomic factors surrounding and influencing an organization
Unrelated (conglomerate or lateral) diversification - ANSWER - 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 - ANSWER - assimilation of the vertical components of an organization through greater internal control and coordination
Virtual integration - ANSWER - coordination of intra-organization processes, flows, and outcomes through contractual, non-owned mechanisms
Accountable care organization (ACO) - ANSWER - 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
Barriers to entry - ANSWER - obstacles that impede an organization from entering a market
Benchmarking - ANSWER - comparison of internal data to those of outside organizations for the purpose of evaluating an organization's performance
Business plan - ANSWER - written document that defines, analyzes, and promotes a specific proposal, line of business, or innovative concept
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3 Certificate of need (CON) - ANSWER - state laws in the United States that require organizations to obtain approval from a state planning agency before beginning a major capital project
Average payment period - ANSWER - an organization's accounts payable divided by its annual purchases divided by 365. presents the number of days an organization takes to pay its credit purchases
Balanced scorecards - ANSWER - a monitoring system used to simultaneously evaluate multiple metrics and gather feedback on strategic progress
Balance sheet - ANSWER - financial statement of an organization's assets, liabilities, and capital at a given point in time
Budget variance - ANSWER - difference between a budgeted amount and actual expenditures
Capital budget - ANSWER - estimated dollar amount to be expended on projects in a given fiscal period
Current ratio - ANSWER - an organization's current assets divided by its current liabilities. determines the degree to which an organization can pay its current liabilities with liquid assets
Dashboards - ANSWER - data visualization tool that displays the statuses of key metrics and performance indicators
Days of cash on hand - ANSWER - combined amount of an organization's cash and marketable securities divided by its operating expenses less depreciation, all divided by
- this liquidity indicator evaluates how many days an organization could pay its daily
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operating expenses without additional cash inflows