ACHE BOG (BOARD OF GOVERNORS) EXAM QUESTION
BANK | 2025 COMPLETE CURRENTLY TESTING ACTUAL
EXAM WITH QUESTIONS AND DETAILED ANSWERS |
GUARANTEED EXCELLENCE PASS
The purchasing/receiving process is often the weak link in a healthcare
organization's internal control of its inventory. Which one of the following is
standard procedure in preventing problems in this area?
a. The organization should utilize a decentralized process for the control receiving
b. Consolidation of receiving and storeroom functions will decrease the possibility
of collusion
c. Review of the process by internal auditor should be done on a routine basis
d. The principle of dual receiving accountability as a prerequisite for invoice
payment should be enforced - ✔✔✔ Correct Answer > d. The principle of dual receiving
accountability as a prerequisite for invoice payment should be enforced
The primary reason for the decision to move a freestanding voluntary facility to
an investor-owned healthcare organization is:
a. economy of scale
b. access to equity market
c. access to patient
d. improve visibility in the community - ✔✔✔ Correct Answer > b. access to equity
market
,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
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 - ✔✔✔ Correct
Answer > a. be indicted for alleged theft of facility funds and improper expenditures
of facility funds for personal reasons.
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
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
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
c. Composition of the governing board, committee, and officers - ✔✔✔ Correct
Answer > c. Composition of the governing board, committee, and officers
Successful approaches to strategic planning include:
a. a well-written mission statement, long-range plane, and fiscal plan plus the
history and discussion surrounding them
b. avoidance of high risk decision
c. not paying attention to competitor's activity
d. using rules and past experiences as a guide to future action - ✔✔✔ Correct Answer >
a. a well-written mission statement, long-range plane, and fiscal plan plus the
history and discussion surrounding them
The primary challenge facing a prospector is:
a. protecting and increasing current services (product) or market share through
technical efficiency, cost improvements, or differentiation strategies
b. managing diversification successfully, to guard against expanding too rapidly or
into areas they have little knowledge
, c. managing simultaneously the difficult task of pursuing new markets and
services while avoiding erosion of current services in existing markets
d. creating stability by sticking with strategic plan long enough to accumulate
experience and to develop consistent leadership avoiding random diversification
efforts. - ✔✔✔ Correct Answer > b. managing diversification successfully, to guard
against expanding too rapidly or into areas they have little knowledgeWhen an
acute health care facility is part of a parent-subsidiary type corporation, that
facility typically is:
a. The parent corporation
b. A holding company
c. A member of the association
d. The subsidiary - ✔✔✔ Correct Answer > D.
One of the techniques most frequently used in industry to aid management in
interpreting a firm's balance sheet is computation of the "acid-test ratio", which is
the ratio of:
a. Current assets to current liabilities
b. total assets to total liabilities
c. cash to short term debt
d. Cash marketable securities, and accounts receivables to current liabilities - ✔✔✔
Correct Answer > d. Cash marketable securities, and accounts receivables to current
liabilities
BANK | 2025 COMPLETE CURRENTLY TESTING ACTUAL
EXAM WITH QUESTIONS AND DETAILED ANSWERS |
GUARANTEED EXCELLENCE PASS
The purchasing/receiving process is often the weak link in a healthcare
organization's internal control of its inventory. Which one of the following is
standard procedure in preventing problems in this area?
a. The organization should utilize a decentralized process for the control receiving
b. Consolidation of receiving and storeroom functions will decrease the possibility
of collusion
c. Review of the process by internal auditor should be done on a routine basis
d. The principle of dual receiving accountability as a prerequisite for invoice
payment should be enforced - ✔✔✔ Correct Answer > d. The principle of dual receiving
accountability as a prerequisite for invoice payment should be enforced
The primary reason for the decision to move a freestanding voluntary facility to
an investor-owned healthcare organization is:
a. economy of scale
b. access to equity market
c. access to patient
d. improve visibility in the community - ✔✔✔ Correct Answer > b. access to equity
market
,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
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 - ✔✔✔ Correct
Answer > a. be indicted for alleged theft of facility funds and improper expenditures
of facility funds for personal reasons.
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
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
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
c. Composition of the governing board, committee, and officers - ✔✔✔ Correct
Answer > c. Composition of the governing board, committee, and officers
Successful approaches to strategic planning include:
a. a well-written mission statement, long-range plane, and fiscal plan plus the
history and discussion surrounding them
b. avoidance of high risk decision
c. not paying attention to competitor's activity
d. using rules and past experiences as a guide to future action - ✔✔✔ Correct Answer >
a. a well-written mission statement, long-range plane, and fiscal plan plus the
history and discussion surrounding them
The primary challenge facing a prospector is:
a. protecting and increasing current services (product) or market share through
technical efficiency, cost improvements, or differentiation strategies
b. managing diversification successfully, to guard against expanding too rapidly or
into areas they have little knowledge
, c. managing simultaneously the difficult task of pursuing new markets and
services while avoiding erosion of current services in existing markets
d. creating stability by sticking with strategic plan long enough to accumulate
experience and to develop consistent leadership avoiding random diversification
efforts. - ✔✔✔ Correct Answer > b. managing diversification successfully, to guard
against expanding too rapidly or into areas they have little knowledgeWhen an
acute health care facility is part of a parent-subsidiary type corporation, that
facility typically is:
a. The parent corporation
b. A holding company
c. A member of the association
d. The subsidiary - ✔✔✔ Correct Answer > D.
One of the techniques most frequently used in industry to aid management in
interpreting a firm's balance sheet is computation of the "acid-test ratio", which is
the ratio of:
a. Current assets to current liabilities
b. total assets to total liabilities
c. cash to short term debt
d. Cash marketable securities, and accounts receivables to current liabilities - ✔✔✔
Correct Answer > d. Cash marketable securities, and accounts receivables to current
liabilities
