The Primary Objective of Obtaining Liability Coverage Is to

question 14

Multiple Choice

The primary objective of obtaining liability coverage is to

• A) avoid patient malpractice lawsuits.
• B) protect assets in the event of a settlement in the claimant's favor.
• C) avoid paying malpractice claims.
• D) provide protection against high legal costs.

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Definitions:

Debt-Equity Ratio

The financial ratio reflects how shareholders' equity and debt equally contribute to asset financing.

Yield-To-Maturity

An estimate of the total return expected on a bond if the bond is held until the date it matures.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, used to assess how efficiently a company uses its assets to generate earnings.