A:

1. A hospital is planning to expand its services by adding a new wing with 50

beds and a state-of-the-art diagnostic center. The hospital has conducted a

market analysis and projected the demand and revenue for the new services.

The hospital also has estimated the capital and operating costs of the

expansion project. What is the next step in the financial strategic planning

process for the hospital?

a) Develop a financing plan to raise funds for the project

b) Conduct a sensitivity analysis to assess the impact of uncertainties on the

project

c) Evaluate the feasibility and profitability of the project using financial ratios

and indicators

d) *All of the above*

Rationale: The next step in the financial strategic planning process is to

evaluate the feasibility and profitability of the project using financial ratios

and indicators, such as net present value, internal rate of return, payback

period, break-even point, etc. The hospital also needs to develop a financing

plan to raise funds for the project from various sources, such as debt, equity,

grants, donations, etc. The hospital also needs to conduct a sensitivity

analysis to assess the impact of uncertainties on the project, such as changes

in demand, revenue, costs, interest rates, etc.

2. A primary care clinic is facing increasing competition from other providers

in its service area. The clinic has decided to adopt a differentiation strategy to

attract and retain patients by offering high-quality care and superior

customer service. The clinic has set a goal to achieve a patient satisfaction

score of 90% or higher in the next year. How should the clinic align its

budgeting process with its strategic goal?

a) *The clinic should use a zero-based budgeting approach to allocate

resources based on the needs and priorities of each department and