As a health care manager, you have been tasked with setting up a new service in your department. As part of the preparation for this new venture, you must research and decide on the best investment.
Businesses often use their profits (cash assets or revenue) to expand their portfolios, such as investments, which may include stocks, bonds, and capital expenditures. This can be used to increase revenue streams. They also invest for protection purposes so they don’t have all of their money invested in 1 place. According to Accounting, there are several reasons why a business must practice sound financial management when using its profits.
Select business investment
Selected:Expanding services (e.g., ambulatory care center, home health agency, or buying a physician practice)
Using your selected business investment option, respond to the following:
• Explain the investment option.
• Discuss what you might need to do during your analysis to decide to invest using the selected option.
• Identify the financial statement you would use to help you make the decision.
• Provide a rationale for why you think the health care organization would benefit from using their cash assets to invest in the option you selected.
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