A Small Hospital in a Suburb of a Large Metropolitan

question 96

Multiple Choice

A small hospital in a suburb of a large metropolitan area wants to further develop its operations and services in order to compete with other hospitals in the region. In analyzing the criteria for making this happen, location is a primary concern. If it constructs additional floors, it could increase the quality of a few services in its present location, but city regulations would require more parking. As it looks for new property, which of the following criteria would not be an important consideration for this facility?

• A) Access to good roads and interstate system
• B) Tax benefits
• C) Skilled labor
• D) Time-to-market

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Definitions:

Share Dilution

A reduction in existing shareholders' ownership percentage caused by the issuance of new shares.

Government Support

Financial or non-financial aid provided by the government to businesses, industries, or individuals in forms such as grants, loans, or tax incentives.

NCI

NCI, or Non-Controlling Interest, refers to the share of ownership in a subsidiary that belongs to shareholders other than the parent company.

Entity Method

An accounting technique used in consolidations, treating the parent and subsidiary as separate entities for the calculation of minority interest and consolidated net income.