MHA 707 Final Exam Questions and Correct Answers
Latest Updated
QUESTION 1
In healthcare administration, which of the following best defines strategic
planning?
A. Day-to-day operational task scheduling
B. Long-term goal formation and alignment with mission and vision
C. Staff performance evaluation
D. Financial auditing and compliance
CORRECT ANSWER: B. Long-term goal formation and alignment with mission
and vision
RATIONALE: Strategic planning focuses on establishing long-term objectives and
aligning resources and actions with the organization’s overall mission and vision,
rather than short-term daily tasks.
QUESTION 2
Under the Affordable Care Act (ACA), which provision aims to reduce the number
of uninsured individuals?
A. Limiting Medicaid expansion
B. Employer mandate for coverage
C. Decreasing Medicare reimbursements
D. Removal of the individual marketplace
CORRECT ANSWER: B. Employer mandate for coverage
RATIONALE: The ACA requires large employers to provide health insurance to full-
time employees or face penalties, thereby expanding coverage.
,QUESTION 3
What is the primary purpose of a Balanced Scorecard in healthcare organizations?
A. To track only financial metrics
B. To evaluate both financial and non-financial performance indicators
C. To simplify patient billing procedures
D. To determine short-term profitability
CORRECT ANSWER: B. To evaluate both financial and non-financial
performance indicators
RATIONALE: A Balanced Scorecard integrates multiple dimensions—financial,
customer, internal process, and learning/growth—to measure organizational
health comprehensively.
QUESTION 4
Which type of budget focuses on projecting patient volumes and revenue
streams?
A. Operating budget
B. Capital budget
C. Cash budget
D. Workforce budget
CORRECT ANSWER: A. Operating budget
RATIONALE: Operating budgets estimate revenues and expenses tied to ongoing
services, such as patient care volume and payor mix.
QUESTION 5
In organizational behavior, transformational leadership primarily involves:
A. Controlling decision-making through strict oversight
B. Inspiring and motivating followers to exceed expectations
,C. Providing transactional rewards for specific tasks
D. Implementing detailed command protocols
CORRECT ANSWER: B. Inspiring and motivating followers to exceed
expectations
RATIONALE: Transformational leaders elevate employee morale, engagement, and
innovation through vision and inspiration.
QUESTION 6
HIPAA primarily regulates which aspect of healthcare operations?
A. Medical malpractice
B. Data privacy and patient information security
C. Workplace safety
D. Research compliance in clinical trials
CORRECT ANSWER: B. Data privacy and patient information security
RATIONALE: HIPAA ensures that patient health information is protected against
unauthorized access and misuse.
QUESTION 7
A hospital’s utilization review committee is primarily responsible for:
A. Reviewing staff credentialing
B. Evaluating the necessity and efficiency of services provided to patients
C. Managing medical equipment procurement
D. Conducting marketing campaigns for hospital services
CORRECT ANSWER: B. Evaluating the necessity and efficiency of services
provided to patients
RATIONALE: Utilization review ensures clinically appropriate and cost-effective care
delivery.
, QUESTION 8
Which of the following federal programs primarily covers individuals aged 65 and
older?
A. Medicaid
B. CHIP
C. Medicare
D. TRICARE
CORRECT ANSWER: C. Medicare
RATIONALE: Medicare provides health coverage to those 65 or older, as well as
certain younger individuals with disabilities.
QUESTION 9
The concept of benchmarking in healthcare management serves to:
A. Compare organizational performance against best practices or peer institutions
B. Determine staff scheduling efficiency
C. Establish individual salary ranges
D. Measure patient satisfaction only
CORRECT ANSWER: A
RATIONALE: Benchmarking identifies gaps in performance by comparing key
indicators with high-performing organizations.
QUESTION 10
Which financial statement shows an organization’s revenues, expenses, and profit
over a period of time?
A. Balance sheet
B. Income statement
C. Cash flow projection
D. Statement of retained earnings
Latest Updated
QUESTION 1
In healthcare administration, which of the following best defines strategic
planning?
A. Day-to-day operational task scheduling
B. Long-term goal formation and alignment with mission and vision
C. Staff performance evaluation
D. Financial auditing and compliance
CORRECT ANSWER: B. Long-term goal formation and alignment with mission
and vision
RATIONALE: Strategic planning focuses on establishing long-term objectives and
aligning resources and actions with the organization’s overall mission and vision,
rather than short-term daily tasks.
QUESTION 2
Under the Affordable Care Act (ACA), which provision aims to reduce the number
of uninsured individuals?
A. Limiting Medicaid expansion
B. Employer mandate for coverage
C. Decreasing Medicare reimbursements
D. Removal of the individual marketplace
CORRECT ANSWER: B. Employer mandate for coverage
RATIONALE: The ACA requires large employers to provide health insurance to full-
time employees or face penalties, thereby expanding coverage.
,QUESTION 3
What is the primary purpose of a Balanced Scorecard in healthcare organizations?
A. To track only financial metrics
B. To evaluate both financial and non-financial performance indicators
C. To simplify patient billing procedures
D. To determine short-term profitability
CORRECT ANSWER: B. To evaluate both financial and non-financial
performance indicators
RATIONALE: A Balanced Scorecard integrates multiple dimensions—financial,
customer, internal process, and learning/growth—to measure organizational
health comprehensively.
QUESTION 4
Which type of budget focuses on projecting patient volumes and revenue
streams?
A. Operating budget
B. Capital budget
C. Cash budget
D. Workforce budget
CORRECT ANSWER: A. Operating budget
RATIONALE: Operating budgets estimate revenues and expenses tied to ongoing
services, such as patient care volume and payor mix.
QUESTION 5
In organizational behavior, transformational leadership primarily involves:
A. Controlling decision-making through strict oversight
B. Inspiring and motivating followers to exceed expectations
,C. Providing transactional rewards for specific tasks
D. Implementing detailed command protocols
CORRECT ANSWER: B. Inspiring and motivating followers to exceed
expectations
RATIONALE: Transformational leaders elevate employee morale, engagement, and
innovation through vision and inspiration.
QUESTION 6
HIPAA primarily regulates which aspect of healthcare operations?
A. Medical malpractice
B. Data privacy and patient information security
C. Workplace safety
D. Research compliance in clinical trials
CORRECT ANSWER: B. Data privacy and patient information security
RATIONALE: HIPAA ensures that patient health information is protected against
unauthorized access and misuse.
QUESTION 7
A hospital’s utilization review committee is primarily responsible for:
A. Reviewing staff credentialing
B. Evaluating the necessity and efficiency of services provided to patients
C. Managing medical equipment procurement
D. Conducting marketing campaigns for hospital services
CORRECT ANSWER: B. Evaluating the necessity and efficiency of services
provided to patients
RATIONALE: Utilization review ensures clinically appropriate and cost-effective care
delivery.
, QUESTION 8
Which of the following federal programs primarily covers individuals aged 65 and
older?
A. Medicaid
B. CHIP
C. Medicare
D. TRICARE
CORRECT ANSWER: C. Medicare
RATIONALE: Medicare provides health coverage to those 65 or older, as well as
certain younger individuals with disabilities.
QUESTION 9
The concept of benchmarking in healthcare management serves to:
A. Compare organizational performance against best practices or peer institutions
B. Determine staff scheduling efficiency
C. Establish individual salary ranges
D. Measure patient satisfaction only
CORRECT ANSWER: A
RATIONALE: Benchmarking identifies gaps in performance by comparing key
indicators with high-performing organizations.
QUESTION 10
Which financial statement shows an organization’s revenues, expenses, and profit
over a period of time?
A. Balance sheet
B. Income statement
C. Cash flow projection
D. Statement of retained earnings
