ACHE BOG Exam Test 2027 | 100 Practice
Questions & Correct Answers |
Comprehensive Exam Prep & Study Guide
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
Answer D: What the institution would have to pay for a similarly prepared person if that person
were employed elsewhere
Rationale: CEO compensation should be market-based, reflecting what similar institutions would pay. ---
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
Answer A: Approve the mission, vision, and long-range plan
Rationale: The governing board's essential function includes approving mission, vision, and long-range
plans. ---
3. The key to enhancing board effectiveness is:
A) Getting the right people to serve on the board
B) Supporting and selecting the right CEO
C) Orienting and training the CEO
,D) Organizing the board's work
Answer D: Organizing the board's work
Rationale: Effective board organization is key to enhancing board effectiveness. ---
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
Answer A: When not legally prohibited
Rationale: Medical staff members can serve on the governing board unless legally prohibited. ---
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
Answer B: Represents the board internally and externally
Rationale: The CEO represents the board both internally and externally. ---
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
Answer D: Establishes guidelines and makes final choices among competing opportunities
,Rationale: The board establishes budget guidelines and makes final decisions among competing
opportunities. ---
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
Answer C: Governing Body
Rationale: The governing body is responsible for policy, quality of care, and institutional planning. ---
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
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
Answer A: Be indicted for alleged theft of facility funds and improper expenditures of facility
funds for personal reasons
Rationale: Trustees have fiduciary duties and can be held liable for improper use of facility funds. ---
9. Ultimate responsibility for the mission statement rests with the:
A) CEO and medical staff
B) Governing Board
C) Community and CEO
, D) CEO
Answer B: Governing Board
Rationale: The governing board has ultimate responsibility for the mission statement. ---
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
D) Physicians will listen to them
Answer B: Of what they can do for the organization
Rationale: Board members are chosen for what they can contribute to the organization. ---
11. The bylaws of healthcare organization should include which of the following?
A) Committee scope and function
B) The privileges of the medical staff
C) The names of the stockholders in the organization
D) Composition of the governing board, committee, and officers
Answer D: Composition of the governing board, committee, and officers
Rationale: Bylaws should include the composition of the governing board, committees, and officers. ---
12. Successful approaches to strategic planning include:
A) A well-written mission statement, long-range plan, and fiscal plan plus the history and discussion
surrounding them
B) Avoidance of high-risk decisions
C) Not paying attention to competitor's activity
D) Using rules and past experiences as a guide to future action
Answer A: A well-written mission statement, long-range plan, and fiscal plan plus the history and
discussion surrounding them
Questions & Correct Answers |
Comprehensive Exam Prep & Study Guide
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
Answer D: What the institution would have to pay for a similarly prepared person if that person
were employed elsewhere
Rationale: CEO compensation should be market-based, reflecting what similar institutions would pay. ---
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
Answer A: Approve the mission, vision, and long-range plan
Rationale: The governing board's essential function includes approving mission, vision, and long-range
plans. ---
3. The key to enhancing board effectiveness is:
A) Getting the right people to serve on the board
B) Supporting and selecting the right CEO
C) Orienting and training the CEO
,D) Organizing the board's work
Answer D: Organizing the board's work
Rationale: Effective board organization is key to enhancing board effectiveness. ---
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
Answer A: When not legally prohibited
Rationale: Medical staff members can serve on the governing board unless legally prohibited. ---
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
Answer B: Represents the board internally and externally
Rationale: The CEO represents the board both internally and externally. ---
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
Answer D: Establishes guidelines and makes final choices among competing opportunities
,Rationale: The board establishes budget guidelines and makes final decisions among competing
opportunities. ---
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
Answer C: Governing Body
Rationale: The governing body is responsible for policy, quality of care, and institutional planning. ---
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
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
Answer A: Be indicted for alleged theft of facility funds and improper expenditures of facility
funds for personal reasons
Rationale: Trustees have fiduciary duties and can be held liable for improper use of facility funds. ---
9. Ultimate responsibility for the mission statement rests with the:
A) CEO and medical staff
B) Governing Board
C) Community and CEO
, D) CEO
Answer B: Governing Board
Rationale: The governing board has ultimate responsibility for the mission statement. ---
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
D) Physicians will listen to them
Answer B: Of what they can do for the organization
Rationale: Board members are chosen for what they can contribute to the organization. ---
11. The bylaws of healthcare organization should include which of the following?
A) Committee scope and function
B) The privileges of the medical staff
C) The names of the stockholders in the organization
D) Composition of the governing board, committee, and officers
Answer D: Composition of the governing board, committee, and officers
Rationale: Bylaws should include the composition of the governing board, committees, and officers. ---
12. Successful approaches to strategic planning include:
A) A well-written mission statement, long-range plan, and fiscal plan plus the history and discussion
surrounding them
B) Avoidance of high-risk decisions
C) Not paying attention to competitor's activity
D) Using rules and past experiences as a guide to future action
Answer A: A well-written mission statement, long-range plan, and fiscal plan plus the history and
discussion surrounding them
