Compare and discriminate between ideas, assess the value of theories, make choices based on reasoned argument, and verify the value of evidence.

Please read and repsond back to posted below. When preparing your responses to the Discussion Board Questions you are expected to demonstrate the highest levels (i.e., levels 4, 5, and 6) of Bloom’s Taxonomy of Learning, which are: Knowledge: Observe and recall information. Comprehension: Grasp meaning and translate it to a new context. Application: Use information, methods, concepts, and theories in new situations. Analysis: See patterns and organization of parts and recognize hidden meanings. Synthesis: Use old ideas to create new ones, generalize from given facts, relate knowledge from several areas, predict, and draw conclusions. Evaluation: Compare and discriminate between ideas, assess the value of theories, make choices based on reasoned argument, and verify the value of evidence. Establishing a medical practice in the healthcare industry necessitates careful planning surrounding its capitalization structure. This structure comprises the allocation of resources between debt and equity financing, which is essential for meeting the practice’s financial needs. To comprehend this subject thoroughly, we will delve into various factors that must be considered when determining an appropriate capitalization structure and the potential risks associated with it. Financing Decisions for the Medical Practice Deciding between debt and equity financing for the medical practice in Fort Lauderdale is crucial. The planning of the capitalization structure should commence with a well-defined strategic plan, which outlines the range of services offered by the practice, anticipated payers, and expectations regarding third-party insurance payment (Paterson & Telyukov, 2022). Based on evidence, this strategy is vital for effective capital-structure planning as it serves as a basis for assessing initial expenses such as obtaining medical equipment, office property, and covering personnel costs. When making financing decisions, it is essential to consider funding sources carefully. While borrowing may be necessary to cover start-up costs, identifying investors who can provide equity capital becomes equally important (Vermooten, 2020). Lenders often require an injection of equity capital to mitigate loan-associated risks. Therefore, reaching agreements with investors concerning governance and debt limits before accepting their funds becomes vital. To ensure harmony and clarity regarding management, ownership, governance, compensation, and profit-sharing arrangements, it is crucial for practice owners as prominent investors to engage in discussions. Neglecting such conversations can result in future financial and operational difficulties. The capitalization structure should be designed according to the practice’s strategy and ability to handle debt (Liu et al., 2022). Going beyond this capacity carries a substantial risk that impacts finances and patient care quality. As a result, seeking external investment capital is preferable to relying on personal debt from practice owners. Potential Risks Due to Capitalization Decision Financial Risk: The level of debt within the capital structure plays a crucial role in determining financial risk. Excessive debt levels can enhance uncertainty regarding the ability to repay, ultimately leading to higher interest rates when attempting to secure additional funding (Paterson & Telyukov, 2022). This form of financial risk stems from changes in decisions related to financing, expectations held by equity partners, and alterations in taxation policy. It may also arise due to evolving policies implemented by insurers or suppliers, as well as shifts in the practice’s overall financial standing. Business Risk: Uncertainty gives rise to external and internal business risks that need careful consideration. Payment reforms, governmental regulations, or fluctuations in disease trends over time influence external business risks. (Paterson & Telyukov, 2022) On the other hand, internal business risks result from embracing new technologies like electronic medical records systems. These risks must be managed effectively to maintain the practice’s financial or operational stability. References Liu, L. X., Clegg, S., & Pollack, J. (2022). Power relations in the finance of infrastructure public-private partnership projects. International Journal of Project Management, 40(7), 725–740. to an external site. Paterson, M., & Telyukov, A. (2022). Healthcare finance and financial management: essentials for advanced practice nurses and interdisciplinary care teams. Destech Publications. Vermooten, J. (2020). Closure and restart as an option for a sustainable South African national airline. Journal of Transport and Supply Chain Management, 14. to an external site.