As a health care manager, you have been tasked with setting up a new service in your
Question:
As a health care manager, you have been tasked with setting up a new service in your department. As part of the preparation for this new venture, you must research and decide on the best investment.
Businesses often use their profits cash assets or revenue to expand their portfolios, such as investments, which may include stocks, bonds, and capital expenditures. This can be used to increase revenue streams. They also invest for protection purposes so they don't have all of their money invested in place. According to Accounting, there are several reasons why a business must practice sound financial management when using its profits.
Select of the business investment options below to use for this discussion:
Investing in stocks and bonds
Investing in other businesses or mergers
Expanding services eg ambulatory care center, home health agency, or buying a physician practice
Purchasing capital expenditures eg MRI, PET scan, electronic medical records system, or other large purchases
Using your selected business investment option, respond to the following:
Explain the investment option.
Discuss what you might need to do during your analysis to decide to invest using the selected option.
Identify the financial statement you would use to help you make the decision.
Provide a rationale for why you think the health care organization would benefit from using their cash assets to invest in the option you selected.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill