BOG Practice Exam Questions and Answers 5..docx

ACHE BOG Exam Sample Test Questions
and Answers 6.
CEO Compensation should be based on:
b b b b b




a. the compensation arrangement with prior CEO
b b b b b b




b. executive compensation in local corporations with similar gross revenues
b b b b b b b b b




c. present day salary plus cost-of living adjustment
b b b b b b b




d. what the institution would have to pay for a similarly prepared person if that person were
b b b b b b b b b b b b b b b b


employed elsewhere - ANS >> d. what the institution would have to pay for a similarly prepared
b b b b b b b b b b b b b b b b b


person if that person were employed elsewhere
b b b b b b b




An essential function of the governing board is to:
b b b b b b b b




a. approve the mission, vision, and long-range plan
b b b b b b b




b. focus on strategic planning
b b b b




c. prepare the operating plan
b b b b




d. review the performance of departmental managers - ANS >> a. approve the mission, vision, and
b b b b b b b b b b b b b b b


long-range plan
b b




The key to enhancing board effectiveness is:
b b b b b b




a. getting the right people to serve on the board
b b b b b b b b b




b. supporting and selecting the right CEO
b b b b b b




c. orientating and training the CEO
b b b b b




d. organizing the board's work - ANS >> d. organizing the board's work
b b b b b b b b b b b b




Members of the medical staff are eligible for full membership on the governing board in the same
b b b b b b b b b b b b b b b b


manner as other individuals:
b b b b




a. when not legally prohibited
b b b b

,b. when they do not actively practice in the organization
b b b b b b b b b




c. when they are not full-time employees
b b b b b b




d. if they are not foreign nationals - ANS >> a. when not legally prohibited
b b b b b b b b b b b b b b




The Chief Executive Officer:
b b b




a. is a member of the board
b b b b b b




b. represents the board internally and externally
b b b b b b




c. is not a member of the board
b b b b b b b




d. has a contract with the board - ANS >> b. represents the board internally and externally
b b b b b b b b b b b b b b b b




Regarding the budget, the board: b b b b




a. does not use the budget exercise as a way to improve quality and productivity
b b b b b b b b b b b b b b




b. gets involved in preparing budgets for all operational units
b b b b b b b b b




c. decides which personnel are needed in top management
b b b b b b b b




d. establishes guidelines and makes final choices among competing opportunities - ANS >> d.
b b b b b b b b b b b b b


establishes guidelines and makes final choices among competing opportunities
b b b b b b b b b




The individual or group responsible for establishing policy, maintaining quality of care, and providing
b b b b b b b b b b b b b


for institutional management planning is the:
b b b b b b




a. COO
b




b. Medical Staff Medical Committee
b b b b




c. Governing Body
b b




d. CEO - ANS >> c. Governing Body
b b b b b b b




A correct statement regarding trustee serving as fiduciaries is that they can:
b b b b b b b b b b b




a. be indicted for alleged theft of facility funds and improper expenditures of facility funds for personal
b b b b b b b b b b b b b b b b


reasons.
b




b. be released from responsibility by giving the audit committee final authority in high risk areas of
b b b b b b b b b b b b b b b b


financial matters, without any action by the whole board
b b b b b b b b b




c. be held personally liable for wrongful acts or omissions by corporate officers or co-trustees by virtue
b b b b b b b b b b b b b b b b


of their position as trustees
b b b b b

, d. waive their fiduciary responsibility as a community organization - ANS >> a. be indicted for alleged
b b b b b b b b b b b b b b b b


theft of facility funds and improper expenditures of facility funds for personal reasons.
b b b b b b b b b b b b b




Ultimate responsibility for the mission statement rests with the:
b b b b b b b b




a. CEO and medical staff
b b b b




b. Governing Board
b b




c. Community and CEO
b b b




d. CEO - ANS >> b. Governing Board
b b b b b b b




A key reason for choosing board members is because:
b b b b b b b b




a. other board members want to listen to their opinions.
b b b b b b b b b




b. of what they can do for the organization
b b b b b b b b




c. have high status in the community
b b b b b b




c. physicians will listen to them they can - ANS >> b. of what they can do for the organization
b b b b b b b b b b b b b b b b b b b




The bylaws of healthcare organization should include which of the following?
b b b b b b b b b b




a. Committee scope and function
b b b b




b. The privileges of the medical staff
b b b b b b




c. The names of the stockholders in the organization
b b b b b b b b




c. Composition of the governing board, committee, and officers - ANS >> c. Composition of the
b b b b b b b b b b b b b b b


governing board, committee, and officers
b b b b b




Successful approaches to strategic planning include:
b b b b b




a. a well-written mission statement, long-range plane, and fiscal plan plus the history and discussion
b b b b b b b b b b b b b b


surrounding them
b b




b. avoidance of high risk decision
b b b b b




c. not paying attention to competitor's activity
b b b b b b




d. using rules and past experiences as a guide to future action - ANS >> a. a well-written mission
b b b b b b b b b b b b b b b b b b


statement, long-range plane, and fiscal plan plus the history and discussion surrounding them
b b b b b b b b b b b b b




The primary challenge facing a prospector is:
b b b b b b