Question 1
CEO Compensation should be based on:
A. The compensation arrangement with prior CEO
B. Executive compensation in local corporations with similar gross revenues
C. Present day salary plus cost-of living adjustment
D. What the institution would have to pay for a similarly prepared person if that person were
employed elsewhere
CORRECT ANSWER
D. What the institution would have to pay for a similarly prepared person if that person
were employed elsewhere
Question 2
An essential function of the governing board is to:
A. Approve the mission, vision, and long-range plan
B. Focus on strategic planning
C. Prepare the operating plan
D. Review the performance of departmental managers
CORRECT ANSWER
A. Approve the mission, vision, and long-range plan
Question 3
The key to enhancing board effectiveness is:
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,A. Getting the right people to serve on the board
B. Supporting and selecting the right CEO
C. Orientating and training the CEO
D. Organizing the board's work
CORRECT ANSWER
D. Organizing the board's work
Question 4
Members of the medical staff are eligible for full membership on the governing board in
the same manner as other individuals:
A. When not legally prohibited
B. When they do not actively practice in the organization
C. When they are not full-time employees
D. If they are not foreign nationals
CORRECT ANSWER
A. When not legally prohibited
Question 5
The Chief Executive Officer:
A. Is a member of the board
B. Represents the board internally and externally
C. Is not a member of the board
D. Has a contract with the board
CORRECT ANSWER
B. Represents the board internally and externally
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,Question 6
Regarding the budget, the board:
A. Does not use the budget exercise as a way to improve quality and productivity
B. Gets involved in preparing budgets for all operational units
C. Decides which personnel are needed in top management
D. Establishes guidelines and makes final choices among competing opportunities
CORRECT ANSWER
D. Establishes guidelines and makes final choices among competing opportunities
Question 7
The individual or group responsible for establishing policy, maintaining quality of care, and
providing for institutional management planning is the:
A. COO
B. Medical Staff Medical Committee
C. Governing Body
D. CEO
CORRECT ANSWER
C. Governing Body
Question 8
A correct statement regarding trustee serving as fiduciaries is that they can:
A. Be indicted for alleged theft of facility funds and improper expenditures of facility funds
for personal reasons.
B. Be released from responsibility by giving the audit committee final authority in high risk
areas of financial matters, without any action by the whole board
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, C. Be held personally liable for wrongful acts or omissions by corporate officers or co-
trustees by virtue of their position as trustees
D. Waive their fiduciary responsibility as a community organization
CORRECT ANSWER
A. Be indicted for alleged theft of facility funds and improper expenditures of facility
funds for personal reasons.
Question 9
Ultimate responsibility for the mission statement rests with the:
A. CEO and medical staff
B. Governing Board
C. Community and CEO
D. CEO
CORRECT ANSWER
B. Governing Board
Question 10
A key reason for choosing board members is because:
A. Other board members want to listen to their opinions.
B. Of what they can do for the organization
C. Have high status in the community
C. Physicians will listen to them they can
CORRECT ANSWER
B. Of what they can do for the organization
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CEO Compensation should be based on:
A. The compensation arrangement with prior CEO
B. Executive compensation in local corporations with similar gross revenues
C. Present day salary plus cost-of living adjustment
D. What the institution would have to pay for a similarly prepared person if that person were
employed elsewhere
CORRECT ANSWER
D. What the institution would have to pay for a similarly prepared person if that person
were employed elsewhere
Question 2
An essential function of the governing board is to:
A. Approve the mission, vision, and long-range plan
B. Focus on strategic planning
C. Prepare the operating plan
D. Review the performance of departmental managers
CORRECT ANSWER
A. Approve the mission, vision, and long-range plan
Question 3
The key to enhancing board effectiveness is:
1
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,A. Getting the right people to serve on the board
B. Supporting and selecting the right CEO
C. Orientating and training the CEO
D. Organizing the board's work
CORRECT ANSWER
D. Organizing the board's work
Question 4
Members of the medical staff are eligible for full membership on the governing board in
the same manner as other individuals:
A. When not legally prohibited
B. When they do not actively practice in the organization
C. When they are not full-time employees
D. If they are not foreign nationals
CORRECT ANSWER
A. When not legally prohibited
Question 5
The Chief Executive Officer:
A. Is a member of the board
B. Represents the board internally and externally
C. Is not a member of the board
D. Has a contract with the board
CORRECT ANSWER
B. Represents the board internally and externally
2
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,Question 6
Regarding the budget, the board:
A. Does not use the budget exercise as a way to improve quality and productivity
B. Gets involved in preparing budgets for all operational units
C. Decides which personnel are needed in top management
D. Establishes guidelines and makes final choices among competing opportunities
CORRECT ANSWER
D. Establishes guidelines and makes final choices among competing opportunities
Question 7
The individual or group responsible for establishing policy, maintaining quality of care, and
providing for institutional management planning is the:
A. COO
B. Medical Staff Medical Committee
C. Governing Body
D. CEO
CORRECT ANSWER
C. Governing Body
Question 8
A correct statement regarding trustee serving as fiduciaries is that they can:
A. Be indicted for alleged theft of facility funds and improper expenditures of facility funds
for personal reasons.
B. Be released from responsibility by giving the audit committee final authority in high risk
areas of financial matters, without any action by the whole board
3
@https://www.stuvia.com/user/thestudyvault
, C. Be held personally liable for wrongful acts or omissions by corporate officers or co-
trustees by virtue of their position as trustees
D. Waive their fiduciary responsibility as a community organization
CORRECT ANSWER
A. Be indicted for alleged theft of facility funds and improper expenditures of facility
funds for personal reasons.
Question 9
Ultimate responsibility for the mission statement rests with the:
A. CEO and medical staff
B. Governing Board
C. Community and CEO
D. CEO
CORRECT ANSWER
B. Governing Board
Question 10
A key reason for choosing board members is because:
A. Other board members want to listen to their opinions.
B. Of what they can do for the organization
C. Have high status in the community
C. Physicians will listen to them they can
CORRECT ANSWER
B. Of what they can do for the organization
4
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