Question

Dear staff:

This is Yu.zhou. May anybody who is good at the Health Care Organization Finance class help me with the questions below. I would like the questions to be answer in paragraph. Thank you, sincerely.

1. How would you explain the meaning of corporate status in relation to healthcare organizations?

2. What are the advantages corporate status provides?

3. How would you explain the rationale for granting organizations tax-exempt status?

Answer 1

Answer: Healthcare organizations represent one, or often more than one corporation. Corporate status provides several advantages to healthcare organizations: limited liability, continuity of existence, increased ability to raise capital. In for-profit corporations, stockholders are also free to sell their shares at any time.

Answer: Corporate status provides many advantages such as Limited Liability. Corporations provide limited liability protection to their owners. The owners are not personally responsible for the debts and liabilities of the business; thus, creditors cannot pursue owners' personal assets, such as a house or car, to pay business debts.

Answer: (i) Relieves the government of the burden having to provide the service itself.

(ii) Rewards organization for providing services that enhance community values and goals.