A Person Is Most Likely to Be Pleased with an HMO

question 51

Multiple Choice

A person is most likely to be pleased with an HMO for health coverage if he or she:

• A)is primarily interested in getting coverage at lower cost than traditional health insurance.
• B)wants to be able to choose any doctor in town.
• C)doesn't mind doing extra paperwork if it will guarantee getting the desired treatment.
• D)likes the idea of having a medical spending account that can be used for most routine expenditures without having to get approval from the carrier.

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Definitions:

Debt to Equity

A financial metric showing the comparative amount of debt and shareholders' equity utilized to fund a company's assets.

Price/Earnings

A valuation ratio of a company's current share price compared to its per-share earnings, used to assess if a stock is over or undervalued.

Ratio Analysis

A technique of analyzing the strength of a company by forming (financial) ratios out of sets of numbers from the financial statements. Ratios are compared with the competition, recent history, and the firm’s plan to assess the quality of its performance.

Stable Company

Refers to a firm with consistent performance, low volatility in its stock price, and predictable financial returns, making it a less risky investment.