Author Question: A _____ business has no stockholders. a. for-profit c. monopoly b. not-for-profit d. ... (Read 61 times)

Cooldude101 · **on:** Jul 8, 2018

A _____ business has no stockholders.

a. for-profit c. monopoly
b. not-for-profit d. fiefdom

Question 2

The concept of _____ does not work well when applied to health care, because the general rule that when the price of an item or service goes up then the demand goes down does not necessarily apply to the public's demand for (or their belief in

their right to obtain) a health care item or service. a. price elasticity c. economics
b. scarcity d. cost maximization

chem1s3 · **Reply #1 on:** Jul 8, 2018

Answer to Question 1

B
Not-for-profit businesses do not have stockholders to share in their successes and profits. All of the profits are channeled directly back into the business for its maintenance and growth. For-profit businesses distribute a certain portion or percentage of their profits to their shareholders as appreciation for their fiscal investment in the company.

Answer to Question 2

A
Price elasticity refers to the price that a person is willing to pay for any given item. Its general rule states that when the cost of an item or service goes up, the demand goes down. The principle, however, does not always apply when dealing with health care issues, due to the public's belief that they are entitled to the best available health care, the state-of-the-art treatments, and innovative new techniques and medications, many of which are expensive due to their newness and the overhead necessary for production.