As a newly appointed CEO for a retirement community, you have been asked to help the board with a critical decision

1. As a newly appointed CEO for a retirement community, you have been asked to help the board with a critical decision: Relocate the facility to a more suburban area, or stay in its current, metropolitan area location. What issues will you have to seriously consider before presenting a recommended strategy? (Select all that apply)

   Lower pricing necessitated by an increasingly crowded and competitive market.

   A dramatic reduction in realized revenue due to a decrease in Medicare/Medicaid reimbursements.

   Losing market-share and the need to move closer to the clientele.

10 points

QUESTION 2

1. What do key financial policy targets include? (Select all that apply)

   Debt policy

   Return on equity.

   A projection of revenue.

   Growth rate in assets

10 points

QUESTION 3

1. What statements are accurate about growth rate in assets? (Select all that apply)

   A projection of revenue.

   Reported Income Index

   Services or product lines provided over a specified period of time.

   The level of activity.

10 points

QUESTION 4

1.   What is a debt policy?

   A decision on how much to go into debt.

   The current net income (revenue minus expenses), divided by your current change in equity.

   A projection of revenue.

   Reported Income Index.

10 points

QUESTION 5

1. The reported income index usually balances out and equals which number?

   2.5

   1.0

   5.5

   5.0

10 points

QUESTION 6

1. Which is the primary measure of financial performance?

   Revenue minus expenses.

   Return on equity.

   Reported income index.

   Current net income.

10 points

QUESTION 7

1. The top requirements for effective financial planning and policymaking include which of the following? (Select all that apply)

   A formally defined limit on debt financing should be established.

   Return on investment (ROI) by program area should be part of the equation when selecting programs.

   Keeping the financial plan separate and distinct from the management control system.

   Non-operating sources of equity should be made part of your financial plan.

10 points

QUESTION 8

1. What are examples of major financial ratios? (Select all that apply)

   Operating margin ratio.

   Total asset turnover ratio.

   Equity financing ratio.

   Operating revenue ratio.

10 points

QUESTION 9

1. What are examples of policies to consider when it comes to financial planning?

   A formally defined limit on debt financing.

   Consider ROI by program.

   Put more focus on operating sources of equity.

   Focus on non-operating sources of equity.

10 points

QUESTION 10

1. What is the latest recommendation on the frequency of updating financial plans?

   Updated every 5 years.

   Updated bi-annually.

   Updated annually.

   Updated quarterly.