NAB CORE
ACTUAL NAB Complete Exam 700
Questions And Correct Detailed
Answers
1. A line authority position is characterized by - ANSWER ✔ - Decision making vested in the supervisor
2. An example of line authority is - ANSWER ✔ - Administrator
3. Major schools of thought regarding source of authority are - ANSWER ✔ - formal and subordinate
acceptance
4. The scope of authority in the operation of the nursing facility is greatest at which level - ANSWER ✔
- Ownership
5. Ultimate authority in a private corporate nursing facility is with the - ANSWER ✔ - Board of
directors
6. Managerial authority is power - ANSWER ✔ - to command, issue orders or exact action by
subordinates
7. Decentralized authority is characterized by - ANSWER ✔ - process of delegating authority
8. Centralized authority is - ANSWER ✔ - vesting decision making in top managment
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, NAB CORE
9. Authority vested in a supervisory nurse is - ANSWER ✔ - middle management authority
10. Decision making authority is when a supervisor - ANSWER ✔ - hires, fires and makes judgmental
decisions
11. Concepts of modern management recommend that an effective administrator will delegate -
ANSWER ✔ - operational authority
12. Unity of command refers to - ANSWER ✔ - reporting to one supervisor
13. Which of the following forms of business is considered the oldest form of business - ANSWER ✔ -
sole proprietorship
14. The term proprietorship as it relates to the nursing facility industry means - ANSWER ✔ - privately
owned
15. The majority of nursing facility beds in the united states are owned by - ANSWER ✔ - corporations
16. Which of the following forms of ownership must have articles drawn up and reduced to writing? -
ANSWER ✔ - corporation
17. Under which form of ownership would the administrator have the greatest latitude of authority
and decision making? - ANSWER ✔ - Sole proprietorship
18. All but one are considered advantages of sole proprietorship - ANSWER ✔ - Unlimited liability
19. All but one are considered disadvantages of a partnership - ANSWER ✔ - Retention of valuable
employees
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, NAB CORE
20. A corporation is - ANSWER ✔ - a legal entity created by law to carry on a business or profession
21. Which one of the following forms of business ownership is considered the most important? -
ANSWER ✔ - Corporation
22. A nonprofit corporation is one which - ANSWER ✔ - makes a profit but returns it to the operation of
business
23. Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing to participate in
medicare must have - ANSWER ✔ - a governing body
24. The role of the governing body pursuant to the Code of Federal Regulation 42 CFR Part 483 is to -
ANSWER ✔ - establish and implement policies regarding management and operation of the facility
25. The Code of Federal Regulations 42 CFR part 483 requires that the facility disclose - ANSWER ✔ -
officers, directors, agents, or management employees
26. The role of the administrator in a modern nursing facility is to - ANSWER ✔ - advise the governing
body and carry out their decisions
27. According to the Code of Federal Regulations 42 CFR Part 483 the administrator appointed by the
governing body must be - ANSWER ✔ - licensed by the state and responsible for the management
of the facility
28. An objective may be defined as - ANSWER ✔ - organizing
29. The first step in planning is - ANSWER ✔ - setting the objectives of the organization
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, NAB CORE
30. Effective management is best carried out by following which method? - ANSWER ✔ - management
by objectives
31. Management by objectives involves - ANSWER ✔ - plurality of objectives
32. Which of the following objectives would be considered first in establishing a new nursing facility? -
ANSWER ✔ - Type of facility
33. An administrator of a proprietary nursing facility should be primarily concerned with which one of
the following objectives? - ANSWER ✔ - Quality of care
34. Which one of the functions of management would be accomplished first? - ANSWER ✔ - planning
35. Relative to setting objectives, which task listed below would be of primary importance for the
administrator to accomplish? - ANSWER ✔ - constantly review and reassess objectives of the
nursing facility
36. Which one of the following statements is true? - ANSWER ✔ - Every department in the nursing
facility should have goals or objectives
37. Since there is a plurality of objectives in a nursing facility, the facility should concern itself with -
ANSWER ✔ - long and short term goals
38. Planning is primarily concerned with - ANSWER ✔ - use of facts to determine course of action for
the future
PAGE 4 OF 72
ACTUAL NAB Complete Exam 700
Questions And Correct Detailed
Answers
1. A line authority position is characterized by - ANSWER ✔ - Decision making vested in the supervisor
2. An example of line authority is - ANSWER ✔ - Administrator
3. Major schools of thought regarding source of authority are - ANSWER ✔ - formal and subordinate
acceptance
4. The scope of authority in the operation of the nursing facility is greatest at which level - ANSWER ✔
- Ownership
5. Ultimate authority in a private corporate nursing facility is with the - ANSWER ✔ - Board of
directors
6. Managerial authority is power - ANSWER ✔ - to command, issue orders or exact action by
subordinates
7. Decentralized authority is characterized by - ANSWER ✔ - process of delegating authority
8. Centralized authority is - ANSWER ✔ - vesting decision making in top managment
PAGE 1 OF 72
, NAB CORE
9. Authority vested in a supervisory nurse is - ANSWER ✔ - middle management authority
10. Decision making authority is when a supervisor - ANSWER ✔ - hires, fires and makes judgmental
decisions
11. Concepts of modern management recommend that an effective administrator will delegate -
ANSWER ✔ - operational authority
12. Unity of command refers to - ANSWER ✔ - reporting to one supervisor
13. Which of the following forms of business is considered the oldest form of business - ANSWER ✔ -
sole proprietorship
14. The term proprietorship as it relates to the nursing facility industry means - ANSWER ✔ - privately
owned
15. The majority of nursing facility beds in the united states are owned by - ANSWER ✔ - corporations
16. Which of the following forms of ownership must have articles drawn up and reduced to writing? -
ANSWER ✔ - corporation
17. Under which form of ownership would the administrator have the greatest latitude of authority
and decision making? - ANSWER ✔ - Sole proprietorship
18. All but one are considered advantages of sole proprietorship - ANSWER ✔ - Unlimited liability
19. All but one are considered disadvantages of a partnership - ANSWER ✔ - Retention of valuable
employees
PAGE 2 OF 72
, NAB CORE
20. A corporation is - ANSWER ✔ - a legal entity created by law to carry on a business or profession
21. Which one of the following forms of business ownership is considered the most important? -
ANSWER ✔ - Corporation
22. A nonprofit corporation is one which - ANSWER ✔ - makes a profit but returns it to the operation of
business
23. Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing to participate in
medicare must have - ANSWER ✔ - a governing body
24. The role of the governing body pursuant to the Code of Federal Regulation 42 CFR Part 483 is to -
ANSWER ✔ - establish and implement policies regarding management and operation of the facility
25. The Code of Federal Regulations 42 CFR part 483 requires that the facility disclose - ANSWER ✔ -
officers, directors, agents, or management employees
26. The role of the administrator in a modern nursing facility is to - ANSWER ✔ - advise the governing
body and carry out their decisions
27. According to the Code of Federal Regulations 42 CFR Part 483 the administrator appointed by the
governing body must be - ANSWER ✔ - licensed by the state and responsible for the management
of the facility
28. An objective may be defined as - ANSWER ✔ - organizing
29. The first step in planning is - ANSWER ✔ - setting the objectives of the organization
PAGE 3 OF 72
, NAB CORE
30. Effective management is best carried out by following which method? - ANSWER ✔ - management
by objectives
31. Management by objectives involves - ANSWER ✔ - plurality of objectives
32. Which of the following objectives would be considered first in establishing a new nursing facility? -
ANSWER ✔ - Type of facility
33. An administrator of a proprietary nursing facility should be primarily concerned with which one of
the following objectives? - ANSWER ✔ - Quality of care
34. Which one of the functions of management would be accomplished first? - ANSWER ✔ - planning
35. Relative to setting objectives, which task listed below would be of primary importance for the
administrator to accomplish? - ANSWER ✔ - constantly review and reassess objectives of the
nursing facility
36. Which one of the following statements is true? - ANSWER ✔ - Every department in the nursing
facility should have goals or objectives
37. Since there is a plurality of objectives in a nursing facility, the facility should concern itself with -
ANSWER ✔ - long and short term goals
38. Planning is primarily concerned with - ANSWER ✔ - use of facts to determine course of action for
the future
PAGE 4 OF 72
