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HSMG 699 Assigniment 1
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Multiple Choice Questions:
1. Which of the following statements about finance, accounting, and financial management is most correct?

a. Accounting is of no value in decision making.
b. Accounting provides the theory and concepts necessary to help managers make better decisions.
c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization.
d. The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise. Pp slide 22 (Gapenski 2012)
e. Financial management is of no
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Corporation – Advantages Unlimited life, easy transfer of ownership, limited liability, ease of raising capital - Disadvantages cost of formation and reporting, double (or triple) taxation for investor-owned corporations (Gapenski 2012 pgs. 28-29).
Chapter 2 Question 2.2 What are the primary differences between investor-owned and not-for-profit corporations? Investor owned corporations have stockholders who are the owners of the corporation. Stockholders exercise control through the proxy process in which they elect the corporation’s board of directors and vote on the matters of major consequence to the firm. As owners, stockholders have claim on the residual earnings of the corporation. Investor-owned corporations are fully taxable. Not-for-profit corporations rather than having a well-defined set of owners, such organizations have a large number of stakeholders who have an interest in the organization. Not-for-profit corporations do not pay taxes; they can accept tax-deductible contributions, and they can issue tax-exempt debt. In lieu of tax filings, not-for-profit corporations must file Form 990, which reports on an organization’s governance and structure and community benefits services, with the Internal Revenue Services (Gapenski 2012 pgs. 59-60).
Chapter 2 Question 2.8 Describe provider based incentives and risks under each of the following reimbursement

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