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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

A To determine: The main purpose of the corporation owned by investors Introduction: In organizations that are owned by investor, the owners control the business by casting their vote for directors. These organizations are subject different federal, state and local taxes. The earnings after taxes go to the owners. The main purpose of the corporation owned by the investor is to maximize the wealth of the shareholders. The emphasis is made to ensure that shareholders get maximum reimbursement on their investment. Investor owned corporations are for profit organization due to which their primary goal is all about making money. The sustainability and feasibility of the business is based on the capital, which comes from the money earned by the business. The main purpose of the corporation owned by the investor is to maximize the wealth of the shareholder. B To determine: The main purpose of the nonprofit corporation in the healthcare industry Introduction: Not for profit organizations operates exclusively for the public and should be run and organized in an efficient manner to keep its operation intact. The earning of the organization does not go to an individual as this organization does not have any shareholders. No taxes are levied on income earned by not for profit organization. It is essential to maintain the financial viability for any not for Profit Corporation in the healthcare industry. The main purpose of such corporation is to serve the community at large. In order to fulfill the same, the corporation is required to produce enough profit to meet its expenses and purchase capital items viz. medical services and technologies. These corporations strive to make healthcare service as inexpensive as possible for the community. The main purpose of not for Profit Corporation in the healthcare industry is to meet the needs of the community and maintain its financial viability. C To determine: Whether there is a major difference between financial goal of not for profit corporation and investor owned corporation. Introduction: In organizations that are owned by investor, the owners control the business by casting their vote for directors. These organizations are subject different federal, state and local taxes. The earnings after taxes go to the owners. Not for profit organizations operates exclusively for the public and should be run and organized in an efficient manner to keep its operation intact. The earning of the organization does not go to an individual as this organization does not have any shareholders. No taxes are levied on income earned by not for profit organization. There is no major difference between not for Profit Corporation and investor owned corporation as far as their financial goals are concerned. Both the corporations are required to keep a check on the financial viability for carting out their goals and to stay in the business. Obviously, not for profit corporation has to be profitable and financially strong so as to keep their business running and achieve their mission and goals in the long period of time. Similarly, a corporation owned by investor has to make money so as to fund everyday operation and satisfy their shareholders. It can be concluded that although both corporations have to earn money so as to fund its operation, however, a corporation owned by investor works towards maximization of shareholder wealth and not for profit corporation works towards serving the community.

A To determine: The main purpose of the corporation owned by investors Introduction: In organizations that are owned by investor, the owners control the business by casting their vote for directors. These organizations are subject different federal, state and local taxes. The earnings after taxes go to the owners. The main purpose of the corporation owned by the investor is to maximize the wealth of the shareholders. The emphasis is made to ensure that shareholders get maximum reimbursement on their investment. Investor owned corporations are for profit organization due to which their primary goal is all about making money. The sustainability and feasibility of the business is based on the capital, which comes from the money earned by the business. The main purpose of the corporation owned by the investor is to maximize the wealth of the shareholder. B To determine: The main purpose of the nonprofit corporation in the healthcare industry Introduction: Not for profit organizations operates exclusively for the public and should be run and organized in an efficient manner to keep its operation intact. The earning of the organization does not go to an individual as this organization does not have any shareholders. No taxes are levied on income earned by not for profit organization. It is essential to maintain the financial viability for any not for Profit Corporation in the healthcare industry. The main purpose of such corporation is to serve the community at large. In order to fulfill the same, the corporation is required to produce enough profit to meet its expenses and purchase capital items viz. medical services and technologies. These corporations strive to make healthcare service as inexpensive as possible for the community. The main purpose of not for Profit Corporation in the healthcare industry is to meet the needs of the community and maintain its financial viability. C To determine: Whether there is a major difference between financial goal of not for profit corporation and investor owned corporation. Introduction: In organizations that are owned by investor, the owners control the business by casting their vote for directors. These organizations are subject different federal, state and local taxes. The earnings after taxes go to the owners. Not for profit organizations operates exclusively for the public and should be run and organized in an efficient manner to keep its operation intact. The earning of the organization does not go to an individual as this organization does not have any shareholders. No taxes are levied on income earned by not for profit organization. There is no major difference between not for Profit Corporation and investor owned corporation as far as their financial goals are concerned. Both the corporations are required to keep a check on the financial viability for carting out their goals and to stay in the business. Obviously, not for profit corporation has to be profitable and financially strong so as to keep their business running and achieve their mission and goals in the long period of time. Similarly, a corporation owned by investor has to make money so as to fund everyday operation and satisfy their shareholders. It can be concluded that although both corporations have to earn money so as to fund its operation, however, a corporation owned by investor works towards maximization of shareholder wealth and not for profit corporation works towards serving the community.

Solution Summary: The author explains the main purpose of the corporation owned by investors, which is to maximize the wealth of shareholders. Not for profit corporations operate exclusively for the public and should be run and organized in an efficient manner.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Chapter 1, Problem 1.9QAP

Chapter 1, Problem 1.11QAP

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What is the difference between For-profit organizations and Not-for-profit organizations?

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Chapter 1 Solutions

Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 1.1 - Prob. 1.1STQ Ch. 1.1 - Prob. 1.2STQ Ch. 1.1 - Prob. 1.3STQ Ch. 1.1 - Prob. 1.4STQ Ch. 1 - Prob. 1.1STQ Ch. 1 - Prob. 1.2STQ Ch. 1 - Prob. 1.3STQ Ch. 1 - Prob. 1.4STQ Ch. 1 - Prob. 2.1STQ Ch. 1 - Prob. 2.2STQ

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