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.   an appropriately determined discount rate
C.   payback analysis
D.   fixed and variable costs
Question #2
An organization that is highly financially leveraged has
A.   a high debt-to-assets ratio
B.   a low operating margin
C.   a positive net margin
D.   a high current ratio
Question #3
All of the following are major problems with net present value except
A.   accurately determining future cash flows
B.   accounting for nonfinancial, mission-based reasons
C.   determining an accurate discount rate
D.   the finite amount of available capital
Question #4
Operating statements include all of the following except
A.   personnel expenses
B.   asset values
C.   revenues
D.   depreciation
Question #5
Return on assets is a
A.   activity ratio
B.   profitability ratio
C.   liquidity ratio
D.   debt 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 encourages vendors to provide higher discounts.
D.   It frees up cash for other purposes.
Question #7
Appropriate liquidity enables an organization to
A.   understand the amount of debt needed to fund long-term projects
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.   meet its short-term financial obligations and carry out planned financial transactions
Question #8
Variable costs
A.   always increase with volume increases
B.   always decrease with volume decreases
C.   change only within a range of volume.
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.   depreciation
B.   all revenue sources
C.   cash flows
D.   arbitrage
Question #10
A key aspect of net present value is
A.   unequal cash flows
B.   time value of money
C.   accounting for depreciation
D.   salvage values
Question #11
Which of the following is a measure of liquidity?
A.   Debt-to-asset ratio
B.   Acid or quick ratio
C.   Operating margin
D.   Asset turnover

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