QUESTION: 1
In the paragraph below, a statement contains two pairs of terms enclosed in parentheses.
Determine which term in each pair correctly completes the statement. Then select the answer
choice containing the two terms that you have chosen.
Inflation plays a role in the health plan environment by influencing the prices of healthcare
services, supplies, and coverage. During an inflationary period, consumers typically have (more
/ less) purchasing power because the prices of goods and services increase (more / less)
quickly than income.

A. More / more
B. More / less
C. Less / more
D. Less / less

Answer(s): C
QUESTION: 2
The Sawgrass Health Center is an institution that trains healthcare professionals and performs
various clinical and other types of healthcare-related research. Because Sawgrass receives
government funding, it is required to provide medical care for the poor. Of the following types of
health plans, Sawgrass can best be described as:

A. A medical foundation
B. An academic medical center (AMC)
C. A healthcare cooperative
D. A community health center (CHC)

Answer(s): B
QUESTION: 3
Regulatory and legislative bodies are among the important environmental forces in the health
plan industry. The following statements are about such regulation and legislation. Select the
answer choice that contains the correct statement.

A. Federal guidelines exist to direct health plans on compliance issues when a health plan
encounters conflicting state laws in a given service area.
B. Administrative rules and regulations do not carry the force of law.
C. As stakeholders in the health plan industry, federal and state governments exert tremendous
influence over a health plan's formation and operations.
D. In recent years, the number of health plan bil s in the state and the federal legislatures has
decreased.

Answer(s): C
QUESTION: 4
The Surrey Medical Supply Company was formed as a limited partnership. In this partnership,
Victoria Lewin is one of the limited partners and Oscar Gould is a general partner. This
information indicates that, with respect to the typical characteristics of limited partnerships,

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