This question deals with the concept of a residual claimant

Economics Apr 14, 2021

This question deals with the concept of a residual claimant.

a. Who are the explicit residual claimants of a for-profit hospital?

b. Are than any implicit residual claimants of a for-profit hospital? If so, who are they?

c. Are there any explicit residual claimants in a non-profit hospital? If so, who are they?

d. Are there any implicit residual claimants in a non-profit hospital? If so, who are they?

Expert Solution

Answer:

A) shareholder are explicit residual claimants.The residual claimants refer to the economic agent who has the sole remaining claim on an organization's net cash flows,

B) yes, the implicit residual claimants are physicians and staff of the hospital.

C) no, the are no explicit residual claimants

D) yes there are implicit residual claimants, property or the hospital owner

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