NSG 5240 Nursing Governance and Resource Management in
Complex Health Systems midterm exam Practice QUESTIONs,
Verified Answers & Detailed Rationales | 2026/2027 Edition
QUESTION 1
A nurse manager is introducing a shared governance model on an acute
care unit. Which of the following best defines the primary objective of
shared governance in nursing?
A. Centralizing all operational decisions within the hospital executive
suite.
B. Decentralizing authority, accountability, and autonomy over practice
to frontline clinical nurses.
C. Eliminating the role of the nurse manager entirely.
D. Delegating financial budget tracking exclusively to non-clinical
accountants.
Correct Answer: B. Decentralizing authority, accountability, and
autonomy over practice to frontline clinical nurses.
,Detailed Rationale: Shared governance empowers clinical nurses by
distributing decision-making power, establishing professional
accountability, and granting autonomy over clinical standards, policies,
and workflows.
QUESTION 2
Which leadership style is characterized by inspiring and motivating
followers through a shared vision, intellectual stimulation, and a focus
on individual professional growth?
A. Autocratic leadership
B. Transactional leadership
C. Transformational leadership
D. Laissez-faire leadership
Correct Answer: C. Transformational leadership
,Detailed Rationale: Transformational leadership focuses on long-term
vision, building strong relationships, stimulating creativity, and inspiring
clinical staff to transcend self-interest for collective organizational goals.
QUESTION 3
When preparing the annual financial plan, a nurse manager allocates
funds for a new wireless telemetry monitoring system costing $60,000.
This purchase belongs in which budget category?
A. Operational budget
B. Capital budget
C. Personnel labor budget
D. Flexible contingency budget
Correct Answer: B. Capital budget
Detailed Rationale: Capital budgets account for major long-term
investments, physical plant upgrades, and expensive equipment
, purchases that exceed a set monetary threshold and have a useful life
exceeding one year.
QUESTION 4
In healthcare financial management, one Full-Time Equivalent (FTE)
working a standard 40-hour work week represents how many total paid
hours annually?
A. 1,040 hours
B. 2,080 hours
C. 4,160 hours
D. 8,760 hours
Correct Answer: B. 2,080 hours
Detailed Rationale: One FTE equals 40 hours per week multiplied by 52
weeks per year, totaling 2,080 paid hours annually, which incorporates
both productive and non-productive hours.
Complex Health Systems midterm exam Practice QUESTIONs,
Verified Answers & Detailed Rationales | 2026/2027 Edition
QUESTION 1
A nurse manager is introducing a shared governance model on an acute
care unit. Which of the following best defines the primary objective of
shared governance in nursing?
A. Centralizing all operational decisions within the hospital executive
suite.
B. Decentralizing authority, accountability, and autonomy over practice
to frontline clinical nurses.
C. Eliminating the role of the nurse manager entirely.
D. Delegating financial budget tracking exclusively to non-clinical
accountants.
Correct Answer: B. Decentralizing authority, accountability, and
autonomy over practice to frontline clinical nurses.
,Detailed Rationale: Shared governance empowers clinical nurses by
distributing decision-making power, establishing professional
accountability, and granting autonomy over clinical standards, policies,
and workflows.
QUESTION 2
Which leadership style is characterized by inspiring and motivating
followers through a shared vision, intellectual stimulation, and a focus
on individual professional growth?
A. Autocratic leadership
B. Transactional leadership
C. Transformational leadership
D. Laissez-faire leadership
Correct Answer: C. Transformational leadership
,Detailed Rationale: Transformational leadership focuses on long-term
vision, building strong relationships, stimulating creativity, and inspiring
clinical staff to transcend self-interest for collective organizational goals.
QUESTION 3
When preparing the annual financial plan, a nurse manager allocates
funds for a new wireless telemetry monitoring system costing $60,000.
This purchase belongs in which budget category?
A. Operational budget
B. Capital budget
C. Personnel labor budget
D. Flexible contingency budget
Correct Answer: B. Capital budget
Detailed Rationale: Capital budgets account for major long-term
investments, physical plant upgrades, and expensive equipment
, purchases that exceed a set monetary threshold and have a useful life
exceeding one year.
QUESTION 4
In healthcare financial management, one Full-Time Equivalent (FTE)
working a standard 40-hour work week represents how many total paid
hours annually?
A. 1,040 hours
B. 2,080 hours
C. 4,160 hours
D. 8,760 hours
Correct Answer: B. 2,080 hours
Detailed Rationale: One FTE equals 40 hours per week multiplied by 52
weeks per year, totaling 2,080 paid hours annually, which incorporates
both productive and non-productive hours.
