accounting!!!!!!!!!!!!!!!!!!!!!!!

Kimberly Fahringer Chapter 9 and 10 questions

1. Create a parable (in the vein of Bastiat’s parable) that would help someone unfamiliar with finance understanding the following concepts: opportunity cost concept, Be sure to address a concept other than opportunity cost. This may include compounding, discounting, annuity payments and perpetuity.

2. Analyze the steps involved in time value analysis to determine the challenges to health care organizations making financial decisions, as well as possible steps they could take to address those challenges.

3. Briefly describe a healthcare organization with which you are familiar (local hospital such as St. Ann’s Westerville, OH, dentist office or family practice) and how that organization could apply concepts of diversifiable risks, portfolio risk, corporate risk, market risk, market beta, stand alone risk, and capital asset pricing model. Provide specific examples to support your response.

4. For the same organization discuss which type of risk would be most relevant (stand alone, corporate or market). Explain your rationale.