Business
Question one
It is most likely that conflicts may arise between the medical staff and the organization’s administration. The cause of the conflict could be the administration’s eagerness to increase the organization’s market share and to provide what it perceives to be essential services to the community (Berger, 2014).The organization may seek to increase it share in the market by introducing alternative medications such as massage therapy, chiropractic and acupuncture. Conversely, the medical staff may reject the additional medicals services because they believe the addition of medicine is not beneficial to the community and the medical staff (Berger, 2014). The medical staff may argue that the introduction of alternative medications is not beneficial due to the absence of adequate peer review concerning the alternative medications. Failure to prove the efficacy of the alternative medicine may complicate the conflict between the medical personnel and the organization’s administration (Frank-Stromborg & Olsen, 2014). Additionally, the medical staff may reject the treatments that have not been authorized by the medical licensing board in the state. Therefore, the conflict may hinder the organization’s ability to increase its control in the market by introducing of alternative medicine (Frank-Stromborg & Olsen, 2014).
Question Two
- Long term debt to capitalization ratio= Long-term debt/Long-term debt+ equity+ preferred stock.
121000/191900+200000+231000=0.19
An organization with high amount of long-term debt has a high long-term due to capitalization ratio thus it is riskier than an organization with low leverage ratio.
- Total debt to capitalization ratio= (short term debt+ long-term debt)/ (equity+ Long-term debt+ short term debt)
(121000+78000)/ (200000+121000+78000) =0.69
A high total debt to capitalization ratio Implies that the company is financially strong due to the tax deductions on the interest payments
- Short term debt to capitalization ratio=short term debt/ (short term debt+ equity+ preferred stock)
A lower short-term debt to capitalization ratio implies that the company can maintain its debt burden within levels that can be managed.
References
Berger, S. (2014). Fundamentals of health care financial management: A practical guide to fiscal issues and activities. New York: John Wiley & Sons.
Frank-Stromborg, M., & Olsen, S. J. (Eds.). (2014). Instruments for clinical health-care research. New York: Jones & Bartlett Learning.
