business

Question 1

the science that deals with the production, distribution and consumption of goods and services or human welfare

Answer 1

economics

Question 2

the up and down movement of an economy’s ability to generate prosperity. at the peak is a healthy economy, and at the trough is an unhealthy economy

Answer 2

the business cycle

Question 3

consumer/producer transactions

Answer 3

market

Question 4

retail

Answer 4

consumer goods

Question 5

wholesale

Answer 5

production goods

Question 6

human resources

Answer 6

labor market

Question 7

financial mechanisms

Answer 7

money market

Question 8

consumers have limted resources so they want to get a band for their buck. They choose the greatest value of what is available to them by comparing relative values of the other alternatives

Answer 8

opportunity cost

Question 9

means the demand has minimal impact on the price. this happens most frequently in a monopoly

Answer 9

inelastic price

Question 10

where net income equals zero

Answer 10

the breakeven point

Question 11

break even formula

Answer 11

total revenue = total cost

Question 12

is met when it is impossible to change the allocation to make one person better without making someone else works

Answer 12

parento efficiency

Question 13

is met when health care is productive at the lowest possible cost

Answer 13

productive efficiency

Question 14

produces the expected result

Answer 14

effictiveness

Question 15

meets society’s requirements for justice

Answer 15

equity

Question 16

is equal treatment for equal need

Answer 16

horizontal equity

Question 17

serve private interests and pay taxes
goal is to maximize profits for the owner
must also serve the community

Answer 17

for-profit, investor owned

Question 18

serve public interests and are tax-exampt
goal is to provide community benefit and optimal patient care
two types: business oriented (private) and government owned
must also turn a profit for sustainabiltiy

Answer 18

not-for profit

Question 19

those without insurance are billed for

Answer 19

full charges

Question 20

no payment received for billed services; written off by the organization

Answer 20

bad debt

Question 21

organization provides care, knowing the patient will be unable to pay

Answer 21

charity care

Question 22

“total current assets” or short-term assest that can be converted to cash in one year

Answer 22

working capital

Question 23

current assets, created in the course of doing business, consisting of revenues recognized, but not yet collected as cash
generally provide no interest, and collection becomes less likely as time passes
having large dollar amounts in this means lost opportunities for other investments

Answer 23

accounts receivable

Question 24

AR (accounts receivable) comprise what percent of healthcare providers current assets

Answer 24

75%

Question 25

methods used to finance AR

Answer 25

factoring receivables | pledging receivable as collateral to negotiate a line of credit to cover temporary cash shortfalls

Question 26

selling at a discount

Answer 26

factoring receivables

Question 27

products are literally delivered to the provider just in time for use, decreases holding costs and obsolescence

Answer 27

just in time

Question 28

each supply item is assigned to one of three groups and is thus monitored according to cost

Answer 28

ABC inventory method

Question 29

revenue is recorded within the period it is earned | expenses are recorded in the period when the resources are consumed

Answer 29

accrual method of accounting

Question 30

revenue is recorded when cash is received | expenses are recorded when bills are paid

Answer 30

cash method of accounting

Question 31

debts that you/your business owes

Answer 31

accounts payable

Question 32

amounts you are owed

Answer 32

accounts receivable

Question 33

actual income and expenses moving in and out of the entity

Answer 33

cash flow

Question 34

addresses the difference of what is charged and what is paid by the third party payers

Answer 34

contractual deductions allowances

Question 35

for one or more sections of the (large) organization separate from the whole entity

Answer 35

fund accounting

Question 36

for funds set apart from general operating funds for future purchase of equipment or building

Answer 36

fund depreciation

Question 37

three primary types of financial statements are the

Answer 37

balance sheet income statement cash flow statement

Question 38

total assets =

Answer 38

total liability + owners equity

Question 39

the resources owned by the company that will benefit future operation and are considered indicative of financial health.

Answer 39

assets

Question 40

land, buildings and equipment

Answer 40

capital assets

Question 41

can be quickly converted to cash

Answer 41

liquid assets

Question 42

require a long conversion period to cash

Answer 42

fixed assets

Question 43

the debts of the entity: what is owed to creditors

Answer 43

liabilities

Question 44

loans that consist of the loan and interest due

Answer 44

notes payable

Question 45

net worth =

Answer 45

total assets-total liabilities

Question 46

when revenues exceed expenses

Answer 46

net income

Question 47

when expenses exceed revenue

Answer 47

net loss

Question 48

steps of financial management

Answer 48

establish a financial management play set annual performance targets track and report performance perform variance analysis and take action if needed

Question 49

full charges

Answer 49

fee for service

Question 50

full charges minus a percentage discount

Answer 50

discounted fee for service

Question 51

the providers actual cost

Answer 51

cost reimbursement

Question 52

a set fee schedule per procedure, course of care or inpatient stay

Answer 52

fixed per diem

Question 53

on fixed amount shared by all provided

Answer 53

bundled payments

Question 54

a set rate to cover all care or aspects of care delivered to the insured group

Answer 54

capitation

Question 55

service volume can be increased by

Answer 55

increasing number of customers increasing the amount of service to each customer providing new service

Question 56

the percentage of each source of payment that can be altered affecting payment per service unit

Answer 56

payer mix

Question 57

the percentage of each diagnostic group of patient that are estimated to be seen.

Answer 57

case mix

Question 58

represents the amount of money that is written off due to contractual discounts, pro bono work or uncollectivle bad debt or charity care

Answer 58

adjustment

Question 59

the cost of resources used in the production of goods and services such as human resources over a defined period of time

Answer 59

operating costs

Question 60

the purchase of high priced items such as equipment and facilities that contribute to the production of goods/services for the long term

Answer 60

capital costs

Question 61

signifies the equivalent of one full time employee who works 40 hours per week

Answer 61

Full time equivalent (FTE)

Question 62

hours that are spend directly on the provision of services such as direct care hours or billable service hours

Answer 62

productive work hours

Question 63

meeting or documentation time, and benefit time such as vacation, holiday, continuing education, sick or travel time

Answer 63

non productive work hours

Question 64

are the ongoing expenses of a business which cannot be attributed to any specific business activity, but are still necessary for the business to function

Answer 64

indirect expenses

Question 65

lease/rent, utilities, general liability, auto or property insurance, communication, environmental services. they also include non productive labor expenses like support services and administrative services although these are usually maintained in the human resource section of a budget

Answer 65

overhead expenses

Question 66

are indirect expenses that are shared between different departments or operating units

Answer 66

allocated costs

Question 67

length of time it will take to recover the entire cost of a capital purchase

Answer 67

payback period

Question 68

determines the rate of return

Answer 68

expected return on investiment

Question 69

are projections of the amount of work that can be performed by one worker in a given time period.

Answer 69

productivity standards