1. Which risk does not affect the managers of a business? A. Stand-alone risk, B
ID: 2751417 • Letter: 1
Question
1. Which risk does not affect the managers of a business?
A. Stand-alone risk,
B.) Market risk,
C. Total risk,
D. none of the above.
2. Which risk is measured by the standard deviation of profitability?
A. Stand-alone risk,
B. Market risk,
C. Total risk,
D. none of the above.
3. Which risk should wise investors be most concerned with?
A. Stand-alone risk,
B. Market risk,
C. Total risk,
D. none of the above.
4. Which risk can be mostly avoided through diversification?
A. Stand-alone risk,
B. Interest rate risk,
C. Marketrisk,
D. none of the above.
5. Which risk is measured by its beta?
A. Stand-alone risk,
B. Market risk,
C. Total risk,
D. none of the above.
6. Which of the following is a Qualitative risk assessment?
a. Surveys,
b. Market beta,
c. Sensitivity analysis,
d. Standard deviation of profitability.
7. Sensitivity analysis:
a. Provides profitability breakeven analysis,
b. Provides direction once a project has started,
c. Identifies input variables that are most critical,
d. All of the above.
8. The certainty equivalent method:
a. Adjusts cash flows for risk,
b. Uses a risk-free discount rate,
c. Is more difficult to implement than a risk-adjusted discount rate,
d. All of the above.
9. Which of the following is NOT true regarding capital rationing?
a. From a financial theory perspective, for for-profit firms there is no basis for it,
b. Safe projects are always chosen over risky projects,
c. It refers to having limited capital for projects,
d. The profitability index is a useful tool.
10. In capital budgeting analysis of projects, higher risk is most easily incorporated by
a. Adjusting the interest rate higher,
b. Adjusting the interest rate lower,
c. Adjusting the cash flows higher,
d. Adjusting the cash flows lower,
e. None of the above.
11. Which of the following is not a short-term asset?
a. Cash,
b. Inventory,
c. Accounts payable,
d. Accounts receivable.
12 Which of the following is not a way Just-in-Time inventory systems can reduce total overall costs to both the purchaser and supplier?
a. Reduced service levels (shorter hours, closed on weekends, etc.),
b. Shifting warehouse costs to the supplier,
c. Economies of scale,
d. All of the above can reduce costs.
13. When considering the Revenue cycle, which factors add to the Healthcare industry
problems?
a. Uninsured Patients,
b. Regulatory Pressures
c. Limited Access to Capital
d. Inefficient Administrative Processes
e. All of the above
14 Extended collection periods are a problem because
the time value of money,
third party payers will forget to pay,
the HCO will loss business when the bill is finally paid,
they aren’t really a problem.
15 Which is not part of the Revenue Cycle?
a. Advertising for new patients
b. Collecting data about the patient
c. Capturingcharges
d. Submitting bills and claims
e. All of the above are parts of the Revenue Cycle.
13. When considering the Revenue cycle, which factors add to the Healthcare industry
problems?
a. Uninsured Patients,
b. Regulatory Pressures
c. Limited Access to Capital
d. Inefficient Administrative Processes
e. All of the above
14 Extended collection periods are a problem because
the time value of money,
third party payers will forget to pay,
the HCO will loss business when the bill is finally paid,
they aren’t really a problem.
15 Which is not part of the Revenue Cycle?
a. Advertising for new patients
b. Collecting data about the patient
c. Capturingcharges
d. Submitting bills and claims
e. All of the above are parts of the Revenue Cycle.
Explanation / Answer
1. C ( TOTAL RISK )
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