Business in Health Care - Exam Preparation

These flashcards cover key vocabulary and concepts related to the business side of health care, legal forms of ownership, management functions, and economic principles.

Business

The activity of providing goods and services to customers for profit.

Profit

The amount left when a business subtracts its expenses from its revenue.

For-Profit Business

A business whose primary purpose is to generate profit for its owners.

Nonprofit Business

A business that focuses on objectives other than profit, such as serving the community.

Sole Proprietorship

A legal form of business ownership with only one owner who makes all decisions and takes all risks.

Partnership

A legal form of business ownership involving two or more people working together to achieve business objectives.

Corporation

A legal form of business ownership that can have many owners, represented by shares of stock.

Management

The business function that involves planning, organizing, directing, and controlling resources to achieve business objectives.

Marketing

The business function that focuses on the exchange process between a business and its customers.

Accounting

The business function that tracks the flow of money into and out of the business.

Production

The business function that designs and manages the processes involved in creating a product or service.

Information Technology (IT)

The use of technology, particularly computers and networks, to manage information within an organization.

Economic Indicators

Key statistics that provide insight into the performance of an economy, including unemployment rates, inflation rates, and interest rates.

Equilibrium Price

The price at which the amount consumers demand equals the amount producers supply.

HIPAA

A federal law that mandates insurance portability and sets procedures for electronic data exchange in health care.

SWOT Analysis

A strategic planning tool that identifies Strengths, Weaknesses, Opportunities, and Threats related to a business.

Regulatory Role of Government

The government's function in overseeing and regulating health care providers and businesses to ensure fair competition and protect the public.

Antitrust Laws

Laws designed to promote competition and prevent monopolistic practices in the market.