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Category: Coursework

Subcategory: Finance

Level: University

Pages: 1

Words: 275

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Question 1
Profit maximization is an aspect of business where the firm determines the levels of input, price, and output to ensure that business attains the maximum profit possible. On the other hand, shareholder wealth maximization is an aspect where the firm targets at increasing the market value of the firm by ensuring return are put into equity to increase the value of the stock. The two are not similar. The difference is on the focus of each aspect. Profit maximization is based on the amount of profit that can be gained in the short run, whereas shareholder wealth maximization is based on attaining the highest value of the firm in the market over a long period (Cleverley, 2017).
Question 2
According to Press et al., (2016), a prospective payment plan is based on assigning a fixed amount of particular payment rates to specific treatment services. In this payment plan, the service giver is scheduled to receive the same amount for providing the given type of treatment and care. On the other hand, a retrospective payment plan is based on the actual charge stated by the caregiver. Further, Conrad, (2015), states that in this kind of plan, the medical service provider will treat a patient and draft a bill of his charges and submits it to the insurance company. The bill drafted details the rendered services. The insurance company will determine whether to make the payment or reject the bill.
Question 3
Hospitals l…

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