Florida Assisted Living Facilities Practice Exam

What defines controlling interest for an applicant or licensee in an assisted living facility?

1. Has a 5% ownership interest

2. Has 10% ownership interest

3. Is a relative with 3% ownership interest

4. Is an investor within 3% ownership interest

The correct answer is: Has a 5% ownership interest

The correct answer is based on the specific criteria established by Florida regulations regarding ownership interests in assisted living facilities. A controlling interest is defined as having a ownership interest that allows an individual to influence or determine the operations or policies of the facility. In this case, having a 5% ownership interest qualifies as a controlling interest because it exceeds the threshold that typically indicates someone has enough equity to exert influence over management decisions. This means that an owner with 5% can significantly impact the direction and management of the facility, which is a key factor in defining control. The other options do not meet this threshold necessary for establishing a controlling interest. For example, having a 10% ownership interest would also likely indicate control; however, the specific definition relied upon here cites the 5% benchmark. The notion of relatives or investors with ownership interests of 3% does not provide sufficient leverage to exert control or influence over the operations of the facility. Therefore, understanding the emphasis on the 5% ownership as the defining line helps clarify what establishes a controlling interest as per the regulatory framework.