NAB Exam- Everything that is needed to know is here
2024/2025!!
A line authority position is characterized by - ✔✔Decision making vested in the supervisor
An example of line authority is - ✔✔Administrator
Major schools of thought regarding source of authority are - ✔✔formal and subordinate acceptance
The scope of authority in the operation of the nursing facility is greatest at which level -
✔✔Ownership
Ultimate authority in a private corporate nursing facility is with the - ✔✔Board of directors
Managerial authority is power - ✔✔to command, issue orders or exact action by subordinates
Decentralized authority is characterized by - ✔✔process of delegating authority
Centralized authority is - ✔✔vesting decision making in top managment
Authority vested in a supervisory nurse is - ✔✔middle management authority
Decision making authority is when a supervisor - ✔✔hires, fires and makes judgmental decisions
Concepts of modern management recommend that an effective administrator will delegate -
✔✔operational authority
Unity of command refers to - ✔✔reporting to one supervisor
Which of the following forms of business is considered the oldest form of business - ✔✔sole
proprietorship
The term proprietorship as it relates to the nursing facility industry means - ✔✔privately owned
The majority of nursing facility beds in the united states are owned by - ✔✔corporations
Which of the following forms of ownership must have articles drawn up and reduced to writing? -
✔✔corporation
Under which form of ownership would the administrator have the greatest latitude of authority and
decision making? - ✔✔Sole proprietorship
All but one are considered advantages of sole proprietorship - ✔✔Unlimited liability
All but one are considered disadvantages of a partnership - ✔✔Retention of valuable employees
,A corporation is - ✔✔a legal entity created by law to carry on a business or profession
Which one of the following forms of business ownership is considered the most important? -
✔✔Corporation
A nonprofit corporation is one which - ✔✔makes a profit but returns it to the operation of business
Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing to participate in
medicare must have - ✔✔a governing body
The role of the governing body pursuant to the Code of Federal Regulation 42 CFR Part 483 is to -
✔✔establish and implement policies regarding management and operation of the facility
The Code of Federal Regulations 42 CFR part 483 requires that the facility disclose - ✔✔officers,
directors, agents, or management employees
The role of the administrator in a modern nursing facility is to - ✔✔advise the governing body and
carry out their decisions
According to the Code of Federal Regulations 42 CFR Part 483 the administrator appointed by the
governing body must be - ✔✔licensed by the state and responsible for the management of the
facility
An objective may be defined as - ✔✔organizing
The first step in planning is - ✔✔setting the objectives of the organization
Effective management is best carried out by following which method? - ✔✔management by
objectives
Management by objectives involves - ✔✔plurality of objectives
Which of the following objectives would be considered first in establishing a new nursing facility? -
✔✔Type of facility
An administrator of a proprietary nursing facility should be primarily concerned with which one of the
following objectives? - ✔✔Quality of care
Which one of the functions of management would be accomplished first? - ✔✔planning
Relative to setting objectives, which task listed below would be of primary importance for the
administrator to accomplish? - ✔✔constantly review and reassess objectives of the nursing facility
Which one of the following statements is true? - ✔✔Every department in the nursing facility should
have goals or objectives
,Since there is a plurality of objectives in a nursing facility, the facility should concern itself with -
✔✔long and short term goals
Planning is primarily concerned with - ✔✔use of facts to determine course of action for the future
Strategic planning - ✔✔helps the facility to re evaluate its mission and identify its long term goals.
Planning on a broad scale is carried on primarily by a - ✔✔administrator
Planning involves all but one of the following - ✔✔personnel decisions
Which of the following is not a function of the administrator? - ✔✔ultimate approval of all policies
(governing board does that)
Planning at the top level of management is best characterized as - ✔✔broad, far-reaching, and basic
In the process of planning, which guideline should be followed? - ✔✔involve as many managers as
possible
Considering the functions of management such as: directing, organizing, coordination, controlling and
planning, which of these functions would be first? - ✔✔planning
The technique of forecasting is important in the modern nursing facility. The accuracy of the
administrator's forecasts will affect the success of planning. Forecasts are expected to be - ✔✔a
reasonable estimate of what reality will be in the future
In the process of planning, the administrator should - ✔✔constantly check, recheck, and modify the
plan if necessarry
A short range plan covers which time period? - ✔✔1-2 years
A long range plan covers - ✔✔3-5 years
The function of management called organizing is best described as - ✔✔the process of grouping
various activities of a similar nature and establishing authority relationships
At which operational level in a nursing facility does organizing take place? - ✔✔at all dept levels
within the organized structure
The mission statement of a nursing facility - ✔✔explains the goals and objectives to the facility
Span on management is the - ✔✔number of employees a supervisor can effectively handle
The schematic drawing representing the functional operation of a nursing facility structure is called the -
✔✔organizational chart
, Service departments of a nursing facility can best be described as - ✔✔departments that facilitate,
aid and assist other departments
An example of a service department in a nursing facility is the - ✔✔personnel office
Line authority structure is best described as a situation in which - ✔✔a superior delegates authority
to a subordinate who, in turn, delegates his or her authority forming a line from the top to the bottom
level of the organization
A line authority position exists when the executive - ✔✔makes final decisions regarding departmental
functioning
An example of a line authority position in a nursing facility is the - ✔✔administrator
An example of a staff authority position in a nursing facility is the - ✔✔administrative assistant
The primary function of a staff authority position is - ✔✔aid, assist, and advise the department heads
All but one of the following would be considered contractual services in a nursing facility -
✔✔Nursing director
A standing committee is one which - ✔✔permanent in nature
A task force is another term used for - ✔✔ad hoc committee
A policy is a - ✔✔a broad guideline for thinking and setting boundaries
Who establishes policy in a nonprofit nursing facility corporation? - ✔✔Board of directors
When a subordinate asks his or her superior to set a policy regarding an operational problem, this is
called - ✔✔appealed policy
A procedure is a - ✔✔detailed statment to accomplish a task
Which of the following is a procedure? - ✔✔a statement explaining the steps to be taken to put
money in safekeeping
A resident checks into a nursing facility without following the steps described relating to safekeeping of
personal belongings. By what procedure should the business office be guided? - ✔✔procedure for
safekeeping
Which of the following statements is not a part of a procedure relating to the death of a resident? -
✔✔ask the mortician to declare the resident dead (only an RN or physician can do this)
Procedures should not be developed by the administration in which area? - ✔✔establishing rules of
conduct of board members
2024/2025!!
A line authority position is characterized by - ✔✔Decision making vested in the supervisor
An example of line authority is - ✔✔Administrator
Major schools of thought regarding source of authority are - ✔✔formal and subordinate acceptance
The scope of authority in the operation of the nursing facility is greatest at which level -
✔✔Ownership
Ultimate authority in a private corporate nursing facility is with the - ✔✔Board of directors
Managerial authority is power - ✔✔to command, issue orders or exact action by subordinates
Decentralized authority is characterized by - ✔✔process of delegating authority
Centralized authority is - ✔✔vesting decision making in top managment
Authority vested in a supervisory nurse is - ✔✔middle management authority
Decision making authority is when a supervisor - ✔✔hires, fires and makes judgmental decisions
Concepts of modern management recommend that an effective administrator will delegate -
✔✔operational authority
Unity of command refers to - ✔✔reporting to one supervisor
Which of the following forms of business is considered the oldest form of business - ✔✔sole
proprietorship
The term proprietorship as it relates to the nursing facility industry means - ✔✔privately owned
The majority of nursing facility beds in the united states are owned by - ✔✔corporations
Which of the following forms of ownership must have articles drawn up and reduced to writing? -
✔✔corporation
Under which form of ownership would the administrator have the greatest latitude of authority and
decision making? - ✔✔Sole proprietorship
All but one are considered advantages of sole proprietorship - ✔✔Unlimited liability
All but one are considered disadvantages of a partnership - ✔✔Retention of valuable employees
,A corporation is - ✔✔a legal entity created by law to carry on a business or profession
Which one of the following forms of business ownership is considered the most important? -
✔✔Corporation
A nonprofit corporation is one which - ✔✔makes a profit but returns it to the operation of business
Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing to participate in
medicare must have - ✔✔a governing body
The role of the governing body pursuant to the Code of Federal Regulation 42 CFR Part 483 is to -
✔✔establish and implement policies regarding management and operation of the facility
The Code of Federal Regulations 42 CFR part 483 requires that the facility disclose - ✔✔officers,
directors, agents, or management employees
The role of the administrator in a modern nursing facility is to - ✔✔advise the governing body and
carry out their decisions
According to the Code of Federal Regulations 42 CFR Part 483 the administrator appointed by the
governing body must be - ✔✔licensed by the state and responsible for the management of the
facility
An objective may be defined as - ✔✔organizing
The first step in planning is - ✔✔setting the objectives of the organization
Effective management is best carried out by following which method? - ✔✔management by
objectives
Management by objectives involves - ✔✔plurality of objectives
Which of the following objectives would be considered first in establishing a new nursing facility? -
✔✔Type of facility
An administrator of a proprietary nursing facility should be primarily concerned with which one of the
following objectives? - ✔✔Quality of care
Which one of the functions of management would be accomplished first? - ✔✔planning
Relative to setting objectives, which task listed below would be of primary importance for the
administrator to accomplish? - ✔✔constantly review and reassess objectives of the nursing facility
Which one of the following statements is true? - ✔✔Every department in the nursing facility should
have goals or objectives
,Since there is a plurality of objectives in a nursing facility, the facility should concern itself with -
✔✔long and short term goals
Planning is primarily concerned with - ✔✔use of facts to determine course of action for the future
Strategic planning - ✔✔helps the facility to re evaluate its mission and identify its long term goals.
Planning on a broad scale is carried on primarily by a - ✔✔administrator
Planning involves all but one of the following - ✔✔personnel decisions
Which of the following is not a function of the administrator? - ✔✔ultimate approval of all policies
(governing board does that)
Planning at the top level of management is best characterized as - ✔✔broad, far-reaching, and basic
In the process of planning, which guideline should be followed? - ✔✔involve as many managers as
possible
Considering the functions of management such as: directing, organizing, coordination, controlling and
planning, which of these functions would be first? - ✔✔planning
The technique of forecasting is important in the modern nursing facility. The accuracy of the
administrator's forecasts will affect the success of planning. Forecasts are expected to be - ✔✔a
reasonable estimate of what reality will be in the future
In the process of planning, the administrator should - ✔✔constantly check, recheck, and modify the
plan if necessarry
A short range plan covers which time period? - ✔✔1-2 years
A long range plan covers - ✔✔3-5 years
The function of management called organizing is best described as - ✔✔the process of grouping
various activities of a similar nature and establishing authority relationships
At which operational level in a nursing facility does organizing take place? - ✔✔at all dept levels
within the organized structure
The mission statement of a nursing facility - ✔✔explains the goals and objectives to the facility
Span on management is the - ✔✔number of employees a supervisor can effectively handle
The schematic drawing representing the functional operation of a nursing facility structure is called the -
✔✔organizational chart
, Service departments of a nursing facility can best be described as - ✔✔departments that facilitate,
aid and assist other departments
An example of a service department in a nursing facility is the - ✔✔personnel office
Line authority structure is best described as a situation in which - ✔✔a superior delegates authority
to a subordinate who, in turn, delegates his or her authority forming a line from the top to the bottom
level of the organization
A line authority position exists when the executive - ✔✔makes final decisions regarding departmental
functioning
An example of a line authority position in a nursing facility is the - ✔✔administrator
An example of a staff authority position in a nursing facility is the - ✔✔administrative assistant
The primary function of a staff authority position is - ✔✔aid, assist, and advise the department heads
All but one of the following would be considered contractual services in a nursing facility -
✔✔Nursing director
A standing committee is one which - ✔✔permanent in nature
A task force is another term used for - ✔✔ad hoc committee
A policy is a - ✔✔a broad guideline for thinking and setting boundaries
Who establishes policy in a nonprofit nursing facility corporation? - ✔✔Board of directors
When a subordinate asks his or her superior to set a policy regarding an operational problem, this is
called - ✔✔appealed policy
A procedure is a - ✔✔detailed statment to accomplish a task
Which of the following is a procedure? - ✔✔a statement explaining the steps to be taken to put
money in safekeeping
A resident checks into a nursing facility without following the steps described relating to safekeeping of
personal belongings. By what procedure should the business office be guided? - ✔✔procedure for
safekeeping
Which of the following statements is not a part of a procedure relating to the death of a resident? -
✔✔ask the mortician to declare the resident dead (only an RN or physician can do this)
Procedures should not be developed by the administration in which area? - ✔✔establishing rules of
conduct of board members
