General HMO Is Building a Provider Network and Is Considering

question 59

Multiple Choice

General HMO is building a provider network and is considering Universal Hospital as an addition to its network. Minimum requirements that General should consider in determining whether Universal is qualified to participate in General's network include A.

• A) Both A and B
• B) A only
• C) B only
• D) Neither A nor B

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Definitions:

Ultimate Credit Risk

The risk of loss that occurs when an obligor (such as an issuer of a bond) defaults on its obligations, considering all measures of mitigation.

Asset-backed Securities

Financial securities collateralized by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables.

Special Purpose Vehicle

A subsidiary company created to isolate financial risk, often utilized in securing assets and securitization transactions.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the corporation's stock at the bondholder's option.