Q&A Hero

Q: information about patients who will use the service is located in the plans: a. organization segment b. marketing segment c. financial segment d. any of the above e. not applicable

Q: the physical location where the service will be provided is information located in the plans: a. organization segment b. marketing segment c. financial segment d. either a or c e. any of the above

Q: in the sample business plan format provided in the text, the executive summary appears: a. immediately before the appendix b. immediately after the title page c. preceding the service and/or equipment description d. a & c e. b & c f. none of the above

Q: within the business plan, a discussion of who may use the service belongs in the: a. organization segment b. marketing segment c. financial segment d. all of the above e. none of the above

Q: the department responsible for the budget is information located in the plans: a. organization segment b. marketing segment c. financial segment d. either a or c e. any of the above

Q: when preparing the financial analysis for a business plan, the required statements and schedules will depend on the following factors: a. the size of the particular project b. the plans presentation procedure that is expected in your own organization c. the projects complexity d. a & c e. a & b f. all of the above

Q: the financial analysis for a business plan should consist of a forecast of operations. this forecast may contain: a. a cash flow statement only b. a balance sheet, income statement and cash flow statement c. an income statement and cash flow statement d. a & b e. a & c f. any of the above

Q: the forecasted or projected periods of time for high-tech equipment: a. often cover a short period such as three to five years b. often cover a long period such as ten years c. often are in accordance with your own organizations acceptable standard length of time for such forecasts or projections d. a & c e. b & c f. all of the above

Q: the financial segment of a business plan will cover a specific period of time. the length of this projected period may be: a. for one year, which may be too short to show true outcomes b. for ten years, which may be too long to meaningfully forecast c. over a range of one year to as much as ten years d. all of the above

Q: if the business plan's financial analysis segment contains a projected income statement, one line item may be "space occupancy". if so, "space occupancy" may include: a. annual depreciation expense or rent expense b. utilities c. insurance d. all of the above e. a and b only

Q: in addition to the composition of the overall management team, the business plan's organization segment should include the: a. division responsible for operations b. directly responsible supervisor c. department responsible for the budget d. competition and its impact e. all of the above f. a, b and c only g. a and b only

Q: if the business plan involves equipment, basic information within the plan should include at least: a. what the equipment specifically does b. why it is special or different c. whether operational training is required d. whether there are regulatory requirements involved e. all of the above f. a, b and c only

Q: the six major components of a strategic plan include the following: mission statement, vision statement, organizational values, _________, ________, and __________.

Q: the ultimate result of strategic planning is an actual plan, presented in __________.

Q: a mission statement explains the _________ of the organization, while values express the organizations __________.

Q: a swot analysis, properly performed, can be an excellent strategic tool. the four components of a swot analysis include (1) strengths; (2) __________; (3) opportunities; and (4) __________.

Q: within the planning cycle and process flow, broad goals become narrower objectives, and narrower objectives become detailed vision statements,

Q: a strategic objective further defines intended outcomes in order to achieve a goal.

Q: projections are based on assumptions that are expected to exist. they reflect actions that are expected to occur.

Q: a vision statement is the same as a mission statement.

Q: within the strategic planning cycle, stakeholders can be both internal and external.

Q: the va planning cycles process flow example also provides va definitions for components within the cycle. which of the following are contained in the vas definition of strategic goals? a. a goal is a statement of aim or purpose included in a strategic plan b. most strategic goals are outcomes c. most strategic goals are short term in nature d. a & b e. a & c f. b & c g. all of the above

Q: an it management accountability report is illustrated within the va planning cycles process flow example. how often does the accountability report in this example have to be submitted? a. at the end of each 5-year planning cycle b. at the end of each 3-year planning cycle c. by the annual end of each fiscal year d. any of the above e. none of the above

Q: federal governmental agencies must comply with legislative requirements pertaining to their strategic plans. which of the following subjects are required to be present in each agencys strategic plan? a. a comprehensive mission statement b. general goals and objectives for major functions and operations c. a description of how action plans are to be achieved d. key external factors that might significantly affect achievement of the goals and objectives e. a & b f. a, b & c g. a, b & d h. all of the above

Q: which of the following legislative acts contain compliance requirements for current strategic planning by federal governmental agencies? a. the government performance and results act (gpra) of 1993 b. the government performance and results modernization act of 2010 c. the health information technology for economic and clinical health act of 2009 d. a & b e. a & c f. b & c g. all of the above

Q: in regard to strategic planning by agencies in the u.s. federal government, how many of the following statements are correct? a. agency performance plans are required b. agency performance reports are required c. requirements make the strategic plan operational because they hold the agencies accountable d. unmet goals may require a performance improvement plan e. a & b f. c & d g. a, b & c h. all of the above

Q: how many of the following statements are correct regarding agencies in the u.s. federal government? agencies in the federal government are: a. required by law to prepare strategic plans b. required by law to provide reports on performance that tie to the strategic plans c. are allowed to prepare strategic plans but are not required to do so d. are allowed to provide performance reports but are not required to do so e. a & b f. a & d g. c & d

Q: performance measures are an integral part of the strategic planning cycle and its process flow. how many of the following statements about such performance measures are correct? a. performance measures can be reported as outcomes b. accountability is achieved by reporting performance measures as outcomes c. a single action plan is linked to a series of performance measures d. a single performance measure is linked to a series of action plans e. a & b f. a, b & c g. a, b & d

Q: likewise, the purpose of mission, vision and value statements is not realized if the message itself is not relayed. how many of the following are acceptable methods of relaying the message? a. provide summaries downloadable from the web b. provide visuals downloadable from the web c. express the mission as a motto d. a & b e. a & c f. b & c g. all of the above

Q: the purpose of mission, vision and value statements is not realized if the message is not understood. how many of the following are acceptable methods of transmitting the message? a. explain the terms that are used b. introduce the message c. emphasize the area of focus d. a & b e. a & c f. b & c g. all of the above

Q: how many of the following statements about the components of a strategic plan are correct? a. any goal should tie directly into an element of the mission statement b. any action plan must support a subcomponent of the overall objective c. any objective should support and tie directly into a particular strategic goal d. there are typically several goals associated with each objective e. a & d only f. a, b & c g. a, b & d h. all of the above

Q: initiatives,targets and operational plans are alternative terms that apply to which of the following components of a strategic plan? a. goals b. objectives c. action plans d. vision statement e. any of the above none of the above

Q: the mission statement will typically cover which of the following? a. a near-future period b. a three-to-five-year period c. as much as ten years from now d. a & b e. any of the above

Q: the purpose of the organization is explained by the: a. mission statement b. vision statement c. organizational values statement

Q: the philosophy of the organization is explained by the: a. mission statement b. vision statement c. organizational values statement

Q: the hilltop home health agency is part of the not-for-profit mountainview retirement community complex. hilltop is reviewing and updating its old mission statement. should we expect the overall content of this organizations mission statement to be: a. broadly charitable in nature b. generally proprietary in nature c. lengthy d. containing advertising phrases about the retirement community e. a, & c f. b & d g. b, c & d

Q: the eastern home health agency is owned by betty and fred jones. the joneses are composing a mission statement to be placed on easterns web site. should we expect the overall content of this organizations mission statement to be: a. broadly charitable b. generally proprietary c. boastful d. containing advertising phrases about the agency e. a, & c f. b & d g. b, c & d

Q: mission, vision and value statements can vary in how many of the aspects described below? a. organization b. length c. terminology d. emphasis e. a, b & c f. a, c & d g. b, c & d h. all of the above

Q: which type of financial statement is often prepared to answer a what-if question? a. a projection b. a forecast c. either of the above d. neither of the above

Q: how many of the following statements about financial projections are correct? projections: a. are different than forecasts b. are views into the future c. are retrospective d. a & b e. a & c f. b & c g. all of the above

Q: how many of the following statements about financial projections are correct? projections: a. are based on assumptions that are expected to exist b. reflect actions that are expected to occur c. are based on different sets of hypothetical assumptions d. reflect actions that might occur, based on such hypothetical assumptions e. are considered to be prospective financial statements f. a & b g. a, b & e h. c & d i. c, d & e

Q: how many of the following statements about financial forecasts are correct? forecasts: a. are based on assumptions that are expected to exist b. reflect actions that are expected to occur c. are based on different sets of hypothetical assumptions d. reflect actions that might occur, based on such hypothetical assumptions e. are considered to be prospective financial statements f. a & b g. a, b & e h. c & d i. c, d & e

Q: how many of the following statements about financial projection assumptions are correct? a. compiling the projections comes before making certain key assumptions b. documenting assumptions adds validity to the final projected statements c. an overall process of information gathering underlies the assumptions themselves d. a & b e. a & c f. b & c g. all of the above

Q: properly constructed financial projections should provide information that is: a. laid out in a logical format b. properly explained for a knowledgeable reader c. supported by key assumptions that are documented d. supported by a series of assumptions, documented or otherwise e. a & b f. a, b & c g. a, b & d

Q: how many of the following questions are appropriate to ask before completing a swot analysis? a. who prepares the final report? b. who receives the final report? c. who is responsible for taking appropriate action after the analysis and its report are completed? d. a & b e. a & c f. b & c g. all of the above

Q: how many of the following questions are appropriate to ask when commencing a situational analysis project? a. what type of task force or committee does the project need? b. who will be appointed to this task force? c. what types of data/information should be gathered for this project? d. who will gather the information that is needed? e. all of the above f. a, b & c g. b, c & d h. all of the above

Q: how many of the following statements about situational analysis are correct? situational analysis: a. reviews the organizations internal operations b. explores the organizations external environment c. analyzes the organizations situation d. a & b e. a & c f. c & d g. all of the above

Q: the swot analysis matrix contains four components, two of which are labeled internal while the remaining two are labeled external. which of the four components are labeled internal? a. strengths b. weaknesses c. opportunities d. threats e. a & b f. a & c g. c & d h. none of the above

Q: mission, vision and value statements can recognize: a. a financial emphasis that is important to the organization b. the special status or focus of the organization c. legislation that restricts activities of the organization d. all of the above e. (a) and (c) only f. (a) and (b) only g. none of the above

Q: the federal governments planning requirements are important because they provide: a. guidance through regulated concepts b. planning templates for non-governmental organizations use c. a framework for strategic planning d. all of the above e. (a) and (c) only f. (b) and (c) only g. none of the above

Q: the manager of a hospital unit may contribute to a strategic planning project by: a. serving on a planning committee or task force b. gathering and/or analyzing data for the project c. writing the organizations mission statement d. suggesting criteria for performance measures e. all of the above f. (a), (b) and (d) only g. (b), (c) and (d) only h. none of the above

Q: xyz healthcare's chief financial officer has calculated that xyz must pay state and federal income taxes this year at a rate of 25 percent. depreciation on equipment purchased for the radiology department will amount to $10,000 this year. income tax savings for the current year on this equipment will therefore amount to __________.

Q: a contract-to-purchase transaction is also called a __________ lease.

Q: the cost of an operating lease is considered to be an __________ expense.

Q: a not-for-profit organization typically is not affected by tax savings because it is exempt from paying income taxes on its operations. however, this fact does not affect any line items in an owning-versus-leasing comparative analysis of net cash flow effects performed between a for-profit and a not-for-profit organization.

Q: depreciation results in an income tax savings because the depreciation can be taken as an expense, and that expense reduces the organization's taxable income.

Q: depreciation expense is a non-cash expense item on the statement of income.

Q: purchasing equipment means assuming ownership of and/or taking title to the item.

Q: when analyzing lease-versus-purchase decisions, it is usually assumed that the money to purchase equipment will be borrowed.

Q: the golden age nursing facility enters into a lease contract for badly needed fancy new kitchen equipment. after the contract is signed, the cfo at the home office of the nursing facility chains ownership informs the golden age administrator that the present value of the kitchen equipment lease payments amounts to 70% of the assets value. does this lease have to be capitalized? a. yes b. no c. dont know

Q: doctors green and brown enter into a lease contract for a roomful of new infusion equipment. the terms of their lease contract allow them to buy the equipment at the end of the five-year lease for one dollar. does this lease have to be capitalized? a. yes b. no c. dont know

Q: metropolis health system enters into a lease contract for a new pharmacy robotic drug cart equipment system. the metropolis cfo determines that the useful life of the drug cart system is ten years. the lease contract will run for eight years. does this lease have to be capitalized? a. yes b. no c. dont know

Q: the process of recording equipment acquired through a contract-to-purchase is called: a. acquiring the lease b. depreciating the lease c. capitalizing the lease d. none of the above

Q: if a lease contract meets any of four particular criteria, then that lease must be capitalized. if, however, a lease contract does not meet any of the four criteria, then that lease is considered to be: a. an operating lease b. a financial lease c. not a lease at all d. none of the above

Q: which type of lease must be capitalized? a. an operating lease b. a financial lease c. either of the above d. neither of the above

Q: a lease-purchase agreement is actually a contract to purchase. a. correct b. not correct c. not applicable

Q: cash reserves on the tri-state medical equipment corporations balance sheet presently amount to $111,200. when tri-state pays cash for twenty percent of the purchase price of the new delivery truck, the cash payment will: a. increase the companys cash reserves b. decrease cash on the balance sheet c. require an entry on the statement of retained earnings d. require an entry to the reserve for depreciation on the income statement

Q: the tri-state medical equipment corporation purchases a large new delivery truck and finances eighty percent of the purchase. entering this transaction on the books of the company should properly involve recording: a. an asset on the balance sheet b. a liability on the cash flow statement c. both an asset and a liability on the balance sheet d. an entry to the reserve for depreciation on the income statement e. none of the above

Q: in the case of purchasing equipment, the purchase could take place by a. financing all of the purchase b. paying cash for all of the purchase c. financing only part of the purchase d. all of the above e. none of the above

Q: leasing is typically an alternative to other means of financing. a. correct b. not correct c. not applicable

Q: based on the information about abc healthcare contained in the previous question, is abc: a. a for-profit company b. a not-for-profit company c. not applicable d. dont know

Q: abc healthcare's controller has calculated that abc must pay state and federal income taxes this year at a rate of 20 percent. depreciation on equipment purchased for the emergency department will amount to $20,000 this year. income tax savings for the current year on this equipment will therefore amount to: a. $2,000 b. $4,000 c. $8,000 d. none of the above

Q: the present value factors used in computing the overall present value net cost examples came from a table of such factors. the table shows years vertically and various percentages in horizontal columns, and is an appendix to the chapter about the time value of money. this chapter actually contains three appendices, each containing a different type of table. which one is the appropriate table for determining the present value factors used in our computations? a. present value table (present value of $1) b. present value of an annuity of $1 c. compound interest table (the future amount of $1) d. none of the above

Q: the overall present value net cost is determined by adding all the present value answers to arrive at a net result (as shown in examples), including which of the following [hint: negative numbers are shown in brackets]: a. both positive and negative numbers b. only positive numbers c. either of the above d. neither of the above

Q: when calculating the comparative present value cost of owning versus cost of leasing, the present value answers for each year are determined by: a. multiplying the present value factor times net cash flow b. multiplying net cash flow times the present value factor c. either of the above d. neither of the above

Q: when calculating the comparative present value cost of owning versus cost of leasing, the computation necessarily includes present value factors. the present value factor for each year represents: a. the assumed cost of capital b. the actual cost of capital c. either of the above d. neither of the above

Q: computing the tax savings from leasing expense is: a. always necessary b. sometimes necessary c. never necessary d. not applicable

Q: when computing the cost of owning: a necessary step in calculating net cash flow may be: a. calculating the tax savings from depreciation expense b. calculating the tax savings from leasing expense c. both of the above d neither of the above

Q: depreciation expense is a necessary assumption when calculating comparative cash flow for: a. a not-for-profit company b. a for-profit company c. both of the above d. not applicable

Q: whether there will be salvage value is an important factor when: a. computing the cost of owning b. preparing a comparative cash flow statement c. computing the cost of leasing d. a & b e. a & c f. b & c