External Analysis Involves Assessing the General Environment, the Healthcare Industry

question 6

Multiple Choice

External analysis involves assessing the general environment, the healthcare industry, the organization, and the specific product and services delivered. At the organizational level, analysis focuses on identifying

• A) Factors that will have a disproportionate impact on the healthcare industry
• B) Factors that impact the entire society
• C) Factors that impact the market where the organization operates
• D) Factors that affect the demand and cost of individual products

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to the behavior observed with normal goods.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases, all else being constant.

Income

The financial gain received by an individual or a business in return for providing a good or service or through investing capital, typically measured over a set period of time.

Perfect Complements

Goods that are used together in fixed proportions, where the consumption or utility of one good directly impacts the effectiveness or utility of the other.