Dr. Ali Considered Purchasing a Clinic Center in Rural Area. Outline the Importance of a Business Plan: Health Economics & Financial Management Assignment, SMU, Singapore

Question 1:

Dr. Ali considered purchasing a clinic center in rural areas. Outline the importance of a business plan for Dr. ALi and the type of accounting information he will require to assist in making his decision. Dr. Tom needs to consider accounting information requirements for different stakeholders surrounding the clinic center. For example, lenders would need information regarding the GP center’s ability to repay debt and service a loan.

Question 2:

Explain why it is possible for a company to report a net profit after tax and have less cash in the bank at the end of the year than at the beginning of the year. Is it possible for the reverse to happen – i.e. report a net loss but have more cash in the bank at the end of the year than at the beginning of the year.? Give two examples to illustrate the answer