HEA 478 - Strategic Management in Healthcare » Fall 2021 » Chapter 9 Quiz

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Question #1
Break-even analysis includes
A.   liquid and non-liquid assets
B.   payback analysis
C.   an appropriately determined discount rate
D.   fixed and variable costs
Question #2
An organization that is highly financially leveraged has
A.   a high current ratio
B.   a low operating margin
C.   a high debt-to-assets ratio
D.   a positive net margin
Question #3
All of the following are major problems with net present value except
A.   accounting for nonfinancial, mission-based reasons
B.   accurately determining future cash flows
C.   the finite amount of available capital
D.   determining an accurate discount rate
Question #4
Operating statements include all of the following except
A.   revenues
B.   personnel expenses
C.   asset values
D.   depreciation
Question #5
Return on assets is a
A.   debt ratio
B.   activity ratio
C.   liquidity ratio
D.   profitability ratio
Question #6
Why would an organization want to have a short average payment period?
A.   It encourages vendors to provide higher discounts.
B.   It frees up cash for other purposes.
C.   It lowers discount rates.
D.   It indicates positive cash flow.
Question #7
Appropriate liquidity enables an organization to
A.   meet its short-term financial obligations and carry out planned financial transactions
B.   minimize the amount of interest it can earn on its invested monies
C.   quickly sell almost all of its assets if threatened with bankruptcy
D.   understand the amount of debt needed to fund long-term projects
Question #8
Variable costs
A.   change in correlation with fixed costs.
B.   change only within a range of volume.
C.   always decrease with volume decreases
D.   always increase with volume increases
Question #9
A major difference between operating margin and net margin is that net margin accounts for
A.   cash flows
B.   arbitrage
C.   depreciation
D.   all revenue sources
Question #10
A key aspect of net present value is
A.   accounting for depreciation
B.   unequal cash flows
C.   time value of money
D.   salvage values
Question #11
Which of the following is a measure of liquidity?
A.   Operating margin
B.   Asset turnover
C.   Acid or quick ratio
D.   Debt-to-asset ratio

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