Trading on the Equity (Leverage) Refers to the

question 80

Multiple Choice

Trading on the equity (leverage) refers to the

• A) amount of working capital.
• B) amount of capital provided by owners.
• C) use of borrowed money to increase the return to owners.
• D) number of times interest is earned.

Identify compliance requirements for hospitals under specific health care acts.

Identify the principles of the Health Insurance Portability and Accountability Act (HIPAA) and common violations.

Understand the application of the Patient Self Determination Act in patient admissions.

Recognize the importance and requirements of state licensure laws in health care practice.

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Definitions:

Economic Order Quantity

The ideal order quantity a company should purchase to minimize its inventory costs including holding, shortage, and order costs.

Carrying Cost

This is the total cost of holding inventory, including storage, handling, insurance, and opportunity costs.

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Variable Cost

Costs that change in proportion to the good or service that a business produces.