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

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

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