MBA – HCS Third Semester

Model Question Paper -2009

Finance, Economics and Materials Management in Healthcare Services –

MH0043
(2 Credits)

Question Number 1 to 20 -1 mark Question

Question Number 21 to 31-2 Marks Question
Question Number 32 to 38 - 4 Marks Question

PART A

1. Financial statements are:

a. Balance sheet and profit and loss account

b. Balance sheet and budget bill
c. Cost sheet and profit and loss account
d. Profit sheet and cost analysis

2. "Unless there is a evidence to the contrary that a

business if not going insolvent or broke." The above one
is the theory of ________________.

a. Accrual
b. Going concern
c. Consistency
d. Tolerance

3. Integrity of internal control means

a. Accuracy and completeness of information

b. Control should achieve the optimal use of resources
c. The information should be properly available
d. The compliance with law should not be taken away

4. According to ICAI internal control is:

a. "Process effected by an entity's & boart of directors,
management and other personnel, designed to provide
reasonable assurance regarding the achievement of
effectiveness and efficiency of operations"
b. "Plan of the organization are the methods and
procedures adapted by the management of an entity to
assist in achieving managements objectives".
c. " A system that encompasses policies, tasks,
behaviors and other aspects of a company that are taken
together".
d. "Comprises of those elements of an organization that
taken together, support people in the achievement.

5. Good standards and benchmarks need to be set for

a. The compliment of the legal requirements multiple

b. Multiple opinion about the same financial statements can be
discarded and theory all types of confusion can be avoided
c. The firm can understand its market standard and can look at future
growth on a real -term basis
d. All the above

6. Which one is not objective of financial audit

a. Checking the arithmetic accuracy

b. Manipulating with data for in purposes
c. Deflection of frauds and errors
d. Providing an opinion based on audit

7. The constitution of India (COL) has rested authority to

a. Legislative body
b. Executive body
c. Judiciary body
d. All of the options

8. Which is a correct option?

a. Taxes are imposed in a regular manner

b. Taxes are not taken very frequently
c. There is no tome to impose tax
d. Taxes are not at all imposed
 9. In the management of working capital a
_______________________is required to consider average of
daily cases, occupancy ratio etc.

a. Marketing manager
b. Sales manager
c. Operation manager
d. Finance manager

10. In hospital financial management involves making of

decisions related to:-

a. Investment
b. Boiling sources of finance
c. Distribution of surplus
d. All the above

11. There are ____________levels of material control

a. Two
b. Three
c. Four
d. Five

12. Risks of spoilage and obsolesce of materials must be avoided in

order to ensure maximum ________________ of each material.

a. Presence
b. Quality
c. Length
d. Stamina

13. Which one of the following is not an essential principle for

managing hospital materials.

a. Quantity
b. Price
c. Source
d. Money
14. Why quantity is considered to be an essential principle for
managing hospital material?

a. It improves the performance of an unit

b. It draws own attention for cost-effectiveness
c. It collects as number of suppliers together
d. None of the above

15. Managed care is the ______________of patients into a plan

that makes captivated payments to health in care providers on
behalf of its _____________.

a. Enrolment , Provides
b. Enrolments, provisions
c. Emulents, Providers
d. Take -up , doctors

16. The history of managed care starts with:

a. World war I
b. World war II
c. Gulf war
d. Industrial revolution

17. One of the limitation of Pvt sector health care services is :

a. The private providers sometime practice with out minimum

standards
b. Number of beds are really less
c. The fees and change taken are sometimes very high
d. All the options are correct

18. In order to encourage new private hospitals and

expansion of existing hospital facilities the tax exemption in
provided under section ___________of the IT Act to such
financial institution that provide long term capital to private
hospitals with 100 bed or more.

a. 10 (23A)
b. 10 23 (g)
c. 10 (23g)
 d. 11 (21B)

19. Which one is the scope of health economics?

a. To find out what influences health

b. To find out what health in and what is its value
c. The demand for health care
d. All the options taken together

20. ___________ defines health as :

" A state of complete physical , mental and social well-

being and not merely the absence of discuss or infirmity.
a. WHO
b. WTO
c. Red cross society
d. UNICEF

PART B

21. "Financial statements should be prepared at definitive

interval." The following principle says the above statement.

a. Historic cost concept

b. Money measurement
c. Business entity concept
d. None of the above

22. Dual aspect concept deals with the ____________

a. mono entry of the profit and loss account

b. Budgeting technology
c. Transfer pricing mechanism
d. Double entry book keeping

23. "You have your own firm. For security reasons you
provide a watchman at night to minimize the risk of
burglary"-
 a. Physical control
b. Accuracy control
c. Supervisory control
d. Segregation duties

24. Propriety audit is a term associated with the audit

of __________, ___________of expenditure is to
verified by the auditor in such audits.

a. State stages
b. Government departments , appropriateness
c. Land owners, measurement
d. Private firms, appropriateness

25. Central exercise duty is imposed by ______________

this is paid when __________ are removed from the
warehouse for sale. Duty paid on inputs which are used in
__________of products that attract exercise duty can be
reduced from the duty payable on sale of products, which
is popularly known as ________.

a. Central government - goods - manufacture - centvat

credit
b. Goods - manufacture CENVAT CREDIT - central
government
c. Control government - cenvat credit - manufacture -
goods
d. Central government - cenvat credit - goods -
manufacture

26. What does the gross working capital not consist of with
respect to the hospital?

a. Materials like inventory of medicals

b. Inventory of maintenance items
c. Hospital people and accessories
d. Receivables from patients

27. (i) EOQ stands for economic order quantity

(ii) Setting stock level is an important tool for quality
control
(iii) Maximum level = (reorder level + reorder
quantity) * Minimum consumption

a b c
d
(i) - T (i) - F (i) - T
(i) - F
(ii) - T (ii) - T (ii) - F
(ii) - F
(iii) - T (iii) - F (iii) - F
(iii) - T
pick the correct choice

28. (i) Sound information

(ii) New material and product
(iii) Buying decision
(iv) Departmental harmony
(v) Good relationship with the suppliers
(vi) Consistency in quality
Which among the among satisfies the correct option?

a. Only (ii), (iii) and (iii) are secondary objectives

b. Options (i) and (v) are primary and (iii) is the secondary
objective
c. Option (iii) and (iv) are secondary objectives but option (vi) is
primary objectives
d. All the options above are correct

29. Which one of the following is not a characteristic feature of

the Kaiser Permanente model of HMO in US

a. Physician and multi-disciplinary specialist teams can design

and execute best care processer
b. EPR provides an accurate picture of each patient
c. Over me and misuse tests and procedures is strongly
discover aged
d. It is a type of a prepaid plan

30. Which of the following statements are True

 (i) Under community based health insurance scheme a
premium equivalent to Rs. .50 per day will entitle eligibility
to get me imbursement of medical expenses up to Rs.
30,000 towards hospitalization.
(ii) Under section 80 Up of income tax 1961 relief to disabled
and handicapped are given
(iii) Relief for medical related expenses of disabled
dependent is given under section 80DD
(iv) Neurological decreases where the disability level has
been certified to be of 40% or above is dement ion and
chorea

a. (iii) & (iv)

b. (i) & (ii)
c. All the option
d. None of them

31. ____________measures outcomes in a composite

metric of both length & quality of life.

a. Cost maintenance analysis

b. Cost minimization analysis
c. Cost utility analysis
d. Cost benefited analysis

PART C

32. Table A Table B

1. Ready made A. Universal
Applicator
2. Process-decision data B. Checklist
document manual operations
3. Recruits policies C. Cash transition
4. ICQ D. Flow chart

(a) (b) ( c)
(d)
1-C 1-B 1-A
1-D
2-B 2-D 2-B
2-B
3-D 3-C 3-C
3-C
4-A 4-A 4-D
4-A

33. Following are the protective functions measurements

I. Scrutiny of the accounting and other records of an undertaking

to assess the reliability
II. Appraisal and review of internal control
III. Detection and prevention of errors and frauds
IV. Safe-guarding the assets

pick out the correct option:

a. I , III & IV
b. I & IV
c. All the options
d. III & IV

34. Match the following

Table A Table B
(p1) Individual (p2) Indian partnership Act
(q1) Firm (q2) Single person or a group of
people
(r1) Company (r2) Joint family
(s1) HUF (s2) Separate legal entity

a. (p1 - s2) , (q1 - r2) , (r1 - p2) , (s1 - q2)

b. (p1 - p2) , (q1 - q2) , (r1 - r2) , (s1 - s2)
c. (p1 - q2) , (q1 - p2) , (r1 - s2) , (s1 - p2)
d. (p1 - q2) , (q1 - p2) , (r1 - s2) , (s1 - r2)

35. Match the following

A B
A1. Loans and Borrowings A2. Internal source
B1. Equity or preference shares B2. External source
C1. Debentures C2. External source
D1. Investment income D2. External source
 a. A1-D2, B1-C2, C2-B2, D1-A2
b. A1-A2, B1-B2 , C1-C2, D1-D2
c. A1-D2, B1-C2, C1-A2, D1-B2
d. A1-C2, B1-D2, C1-B2, D1-A2

36. Find out the incurrent option

a. In case of inventory control two factors to be considered

are :
(i) inventory carrying cost
(ii) inventory order cost
b. EOQ = √2co/I
c. ABC analysis cost ensures close and strict control over
costly items
d. None of the option

37. Fill in the gaps:-

___________ of the category is significant is the initial

stage in the process of _________, _________which
determines the categories of ___________required both
in terms of quality as well as _______________.

a. Material , Management, Stock , Determination,

Quantity
b. Determination, Material , Management, Stock,
Quantity
c. Stock , Quantity, Determination, Management,
Materials
d. Quantity , Determination, Management, Stock ,
Materials

38. Fill in the blanks:

Based on the _____________at a given point of time.

We can definitely arrive at __________ and
__________of a health care ___________.

a. Demand, cost, revenue, service

b. Pricing , revenue, service, cost
c. Supply, cost, service , cost
d. Demand & supply, cost , benefits, service