NURSE EXECUTIVE (NE-BC) CERTIFICATION
PRACTICE EXAM 2025 COMPREHENSIVE
REVIEW |
Credentialing Body: American Nurses Credentialing Center (ANCC)
Exam Format: Multiple Choice | Computer-Based Testing
1. Which leadership style is characterized by a high degree of collaboration,
shared decision-making, and empowerment of staff?
A) Autocratic
B) Transformational
C) Laissez-faire
D) Transactional
Answer: B) Transformational
Rationale: Transformational leaders inspire and motivate staff through shared
vision and empowerment, fostering innovation and collaboration. Autocratic is
directive; laissez-faire is hands-off; transactional focuses on
rewards/punishments.
2. A nurse executive is reviewing the hospital’s budget and notices a significant
increase in overtime costs. What is the best initial action?
A) Immediately reduce staff hours to cut costs
B) Review staffing patterns and patient acuity to determine causes
,C) Implement a hiring freeze
D) Increase patient admissions to generate revenue
Answer: B) Review staffing patterns and patient acuity to determine causes
Rationale: Overtime often results from staffing mismatches or increased patient
needs. Understanding root causes before action prevents inappropriate cost-
cutting that might jeopardize patient care.
3. What is the primary purpose of a root cause analysis (RCA) in a healthcare
setting?
A) To assign blame for errors
B) To collect data for regulatory agencies
C) To identify underlying system causes of adverse events
D) To evaluate staff performance
Answer: C) To identify underlying system causes of adverse events
Rationale: RCA is a structured approach to uncover system-level failures to
prevent recurrence, not to assign individual blame.
4. In strategic planning, which of the following best describes a SWOT analysis?
A) Identifies staffing shortages
B) Reviews financial expenditures
C) Examines Strengths, Weaknesses, Opportunities, and Threats
D) Establishes the organization's mission and vision
, Answer: C) Examines Strengths, Weaknesses, Opportunities, and Threats
Rationale: SWOT is a tool used to assess internal strengths and weaknesses and
external opportunities and threats to guide strategic decisions.
5. Which regulatory agency primarily governs hospital accreditation and patient
safety standards in the United States?
A) Centers for Medicare and Medicaid Services (CMS)
B) Occupational Safety and Health Administration (OSHA)
C) The Joint Commission (TJC)
D) Food and Drug Administration (FDA)
Answer: C) The Joint Commission (TJC)
Rationale: TJC accredits healthcare organizations and sets patient safety and
quality standards. CMS oversees reimbursement and some regulations but
accreditation is TJC’s domain.
6. A nurse executive is implementing a new electronic health record (EHR)
system. What is the most important consideration during this process?
A) Minimizing IT costs
B) Selecting the most popular software
C) Ensuring staff receive adequate training and support
D) Implementing the system as quickly as possible
PRACTICE EXAM 2025 COMPREHENSIVE
REVIEW |
Credentialing Body: American Nurses Credentialing Center (ANCC)
Exam Format: Multiple Choice | Computer-Based Testing
1. Which leadership style is characterized by a high degree of collaboration,
shared decision-making, and empowerment of staff?
A) Autocratic
B) Transformational
C) Laissez-faire
D) Transactional
Answer: B) Transformational
Rationale: Transformational leaders inspire and motivate staff through shared
vision and empowerment, fostering innovation and collaboration. Autocratic is
directive; laissez-faire is hands-off; transactional focuses on
rewards/punishments.
2. A nurse executive is reviewing the hospital’s budget and notices a significant
increase in overtime costs. What is the best initial action?
A) Immediately reduce staff hours to cut costs
B) Review staffing patterns and patient acuity to determine causes
,C) Implement a hiring freeze
D) Increase patient admissions to generate revenue
Answer: B) Review staffing patterns and patient acuity to determine causes
Rationale: Overtime often results from staffing mismatches or increased patient
needs. Understanding root causes before action prevents inappropriate cost-
cutting that might jeopardize patient care.
3. What is the primary purpose of a root cause analysis (RCA) in a healthcare
setting?
A) To assign blame for errors
B) To collect data for regulatory agencies
C) To identify underlying system causes of adverse events
D) To evaluate staff performance
Answer: C) To identify underlying system causes of adverse events
Rationale: RCA is a structured approach to uncover system-level failures to
prevent recurrence, not to assign individual blame.
4. In strategic planning, which of the following best describes a SWOT analysis?
A) Identifies staffing shortages
B) Reviews financial expenditures
C) Examines Strengths, Weaknesses, Opportunities, and Threats
D) Establishes the organization's mission and vision
, Answer: C) Examines Strengths, Weaknesses, Opportunities, and Threats
Rationale: SWOT is a tool used to assess internal strengths and weaknesses and
external opportunities and threats to guide strategic decisions.
5. Which regulatory agency primarily governs hospital accreditation and patient
safety standards in the United States?
A) Centers for Medicare and Medicaid Services (CMS)
B) Occupational Safety and Health Administration (OSHA)
C) The Joint Commission (TJC)
D) Food and Drug Administration (FDA)
Answer: C) The Joint Commission (TJC)
Rationale: TJC accredits healthcare organizations and sets patient safety and
quality standards. CMS oversees reimbursement and some regulations but
accreditation is TJC’s domain.
6. A nurse executive is implementing a new electronic health record (EHR)
system. What is the most important consideration during this process?
A) Minimizing IT costs
B) Selecting the most popular software
C) Ensuring staff receive adequate training and support
D) Implementing the system as quickly as possible
