What is the benefit of basing strategic decisions on


1. To which type of healthcare company would the acid test ratio likely be more applicable than the current ratio? Why?

2. How does debt benefit an organization? What load of debt is considered too great?

3. How can a public hospital have a low or negative operating margin yet have enough funds to survive and prosper?

4. What are the advantages and disadvantages of basing strategic decisions on NPV?

5. What is the benefit of basing strategic decisions on payback period? What problems are presented by the use of this metric?

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Operation Management: What is the benefit of basing strategic decisions on
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