1. The multi-step process used to allocate financial resources includes identifying and describing all capital spending requests for the current budget cycle and
a. describing financial benefits that are expected to result from capital expenditures.
b. setting priorities for each of the capital requests on the basis of urgency factors like critical relevance to current operations, responsiveness to legal mandates, responsiveness to aggressive moves by competitors, or major contributors to the organization’s strategic program.
c. making projections of cash flows for a select few capital request.
d. evaluating and comparing financial and non-financial benefits of a select few capital requests and deciding which ones to fund and in what amounts.
2. Long-term planning for government and other public type agencies is difficult because
a. often times, the requisite leadership and managerial skills are not available
b. there are not sufficient funds to pay consultants
c. management of such agencies is highly politicized
d. rapid employee turnover in government and public healthcare agencies
3. When timing their corporation’s entry into the capital market, managers must carefully consider the current state of the capital markets, the current capital structure of the business, and
a. the projected demands for strategic capital.
b. the current capital structure of the business.
c. the current state of the capital markets.
d. All of the above
4. Strategically significant differences between NFPs and FPs include all of the following except:
a. Because of their organization’s strong charitable mission, managers of NFPs tend to have more experience than FP managers and they also have a greater interest in strategic planning and management than their FP counterparts.
b. Most NFPs are not subject to competitive pressures that compel proficient strategic planning for survival.
c. Funding sources for NFPs are generally less demanding of high performance as equity investors in FPs.
d. The funding for NFPs comes from sources that are not the direct beneficiaries of services
5. The traditional model of strategic planning and management was conceived and developed, primarily, to serve the interest of
a. small groups of healthcare consumers
b. relatively large for-profit corporations
c. large not-for-profit organizations
d. new startup ventures