The Making Ethical Decisions Box "Good Finance or Bad Medicine

question 226

Multiple Choice

The Making Ethical Decisions box "Good Finance or Bad Medicine" has an important message for managers who make financial decisions. Which of the following statements summarizes this message?

• A) Managers must balance good economic decisions with socially forward thinking.
• B) Financial decisions must be based on what insurance companies are willing to pay.
• C) Checking academic credentials of recently graduated doctors is imperative due to the cost of lawsuits that patients may file if they learn that they were served by a surgeon without a license.
• D) The support of a good law firm is worth every penny a hospital might pay. The finance manager should always budget for a legal team.

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Definitions:

Plowshares

Metal blades fitted to a plow, used in farming to cut through the soil.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than other entities, leading to more efficient economic exchanges.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

Master Wood-carver

An highly skilled artisan specialized in crafting artistic designs and sculptures through the carving of wood.