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Answer the following the question on cash assets based off reading Chapter 13 in our textbook. Your initial response is due by Thursday. All participation responses to your classmates or myself are due by Monday.
Write a 175- to 265-word response to the following:
Businesses often use their profits (cash assets) to expand their portfolio such as investments, stock, bonds, capital expenditures, which can be to increase revenue streams as well as for protection purposes. According to our textbook, there are several reasons why a business must practice sound financial management.
With that said, answer the following questions:
Choose one investment option for a healthcare organization (i.e., buying a building, surgery center, home health agency, or physician practice. Possibly expanding services, or purchasing capital expenditures (MRI, PET scan, or other expensive equipment). Possibly investing in bonds and stocks, investing in other healthcare organizations or mergers).
Discuss what might be required to invest in that particular option
Give the rationale of why you think the healthcare organization would benefit from using their cash assets to invest in the option you chose.
Name one health care financial or operational decision that is based on the organizations financial statements? Which financial statement would be best for making that decision?