ACHE BOG EXAM | SAMPLE QUESTIONS
TESTBANK WITH VERIFIED ANSWERS 2025
GRADED A+
According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or minimize the
negative implications of conflict of interest is to:
a. Develop a public relations plan to address potential conflict-of-interest scenarios.
b. Not participate in the specific decision where conflict may exist. c. Ensure members submit annual lists
of major activities and holdings for inspections.
d. Make the conflict known to those in superior positions. - Answer- D
The principles of quality improvement require that healthcare executives change their management
philosophy from
a. Finding fault with employees to finding problems in processes.
b. Finding fault with employees to involving them in the improvement of processes.
c. Focusing on enhanced inspection techniques to focusing on variance.
d. Focusing on employees' roles to focusing on process outcomes. - Answer- A
CEO Compensation should be based on:
a. the compensation arrangement with prior CEO
b. executive compensation in local corporations with similar gross revenues
c. present day salary plus cost-of living adjustment
d. what the institution would have to pay for a similarly prepared person if that person were employed
elsewhere - Answer- d. what the institution would have to pay for a similarly prepared person if that
person were employed elsewhere
An essential function of the governing board is to:
a. approve the mission, vision, and long-range plan
,b. focus on strategic planning
c. prepare the operating plan
d. review the performance of departmental managers - Answer- a. approve the mission, vision, and long-
range plan
The key to enhancing board effectiveness is:
a. getting the right people to serve on the board
b. supporting and selecting the right CEO
c. orientating and training the CEO
d. organizing the board's work - Answer- d. organizing the board's work
Members of the medical staff are eligible for full membership on the governing board in the same manner
as other individuals:
a. when not legally prohibited
b. when they do not actively practice in the organization
c. when they are not full-time employees
d. if they are not foreign nationals - Answer- a. when not legally prohibited
The Chief Executive Officer:
a. is a member of the board
b. represents the board internally and externally
c. is not a member of the board
d. has a contract with the board - Answer- b. represents the board internally and externally
Regarding the budget, the board:
a. does not use the budget exercise as a way to improve quality and productivity
b. gets involved in preparing budgets for all operational units
c. decides which personnel are needed in top management
d. establishes guidelines and makes final choices among competing opportunities - Answer- d.
establishes guidelines and makes final choices among competing opportunities
,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 - 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 - Answer- a. be indicted for alleged
theft of facility funds and improper expenditures of facility funds for personal reasons.
What type of problem arises when a healthcare executive knowingly allows the organization to continue
double billing?
a. An ethical problem for the healthcare executive, but may not be grounds for dismissal if organizational
policy is not clearly stated.
b. An actual conflict of interest, even absent a direct economic benefit to the healthcare executive.
c. An ethical problem for the employee if the healthcare executive receives direct economic benefit.
d. An ethical problem if it clearly violates state or federal law. - Answer- B
Which of the following is a unit of measure commonly used to determine physicians' clinical
productivity?
a. RVU
b. CMS
c. IPO
d. CPU - Answer- A
, Which of the following third-party reimbursement methods provides the largest financial incentive for the
provider to reduce cost?
a. Charge-based
b. Cost-based
c. Prospective payment
d. Per diem - Answer- C
Statements of earnings, financial positions, changes in financial position and retained earnings are
required to be submitted yearly by all:
a. Publicly owned healthcare organizations.
b. Privately owned healthcare organizations.
c. Government owned healthcare organizations.
d. Faith-based owned healthcare organizations. - Answer- A
Which of the following is an Example of a capital expenditure?
a. Land that is purchased for resale.
b. Surgical equipment with a useful life of six months.
c. A building with a useful life of 20 years.
d. Medical supplies used for patient care. - Answer- C
What is the correct order of stages for accomplishing organization change?
a. Identifying, planning, implementation, evaluation.
b. Planning, identifying, evaluation, implementation.
c. Evaluation, planning, implementation, identifying.
d. Planning, evaluation, identifying, implementation. - Answer- A
TESTBANK WITH VERIFIED ANSWERS 2025
GRADED A+
According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or minimize the
negative implications of conflict of interest is to:
a. Develop a public relations plan to address potential conflict-of-interest scenarios.
b. Not participate in the specific decision where conflict may exist. c. Ensure members submit annual lists
of major activities and holdings for inspections.
d. Make the conflict known to those in superior positions. - Answer- D
The principles of quality improvement require that healthcare executives change their management
philosophy from
a. Finding fault with employees to finding problems in processes.
b. Finding fault with employees to involving them in the improvement of processes.
c. Focusing on enhanced inspection techniques to focusing on variance.
d. Focusing on employees' roles to focusing on process outcomes. - Answer- A
CEO Compensation should be based on:
a. the compensation arrangement with prior CEO
b. executive compensation in local corporations with similar gross revenues
c. present day salary plus cost-of living adjustment
d. what the institution would have to pay for a similarly prepared person if that person were employed
elsewhere - Answer- d. what the institution would have to pay for a similarly prepared person if that
person were employed elsewhere
An essential function of the governing board is to:
a. approve the mission, vision, and long-range plan
,b. focus on strategic planning
c. prepare the operating plan
d. review the performance of departmental managers - Answer- a. approve the mission, vision, and long-
range plan
The key to enhancing board effectiveness is:
a. getting the right people to serve on the board
b. supporting and selecting the right CEO
c. orientating and training the CEO
d. organizing the board's work - Answer- d. organizing the board's work
Members of the medical staff are eligible for full membership on the governing board in the same manner
as other individuals:
a. when not legally prohibited
b. when they do not actively practice in the organization
c. when they are not full-time employees
d. if they are not foreign nationals - Answer- a. when not legally prohibited
The Chief Executive Officer:
a. is a member of the board
b. represents the board internally and externally
c. is not a member of the board
d. has a contract with the board - Answer- b. represents the board internally and externally
Regarding the budget, the board:
a. does not use the budget exercise as a way to improve quality and productivity
b. gets involved in preparing budgets for all operational units
c. decides which personnel are needed in top management
d. establishes guidelines and makes final choices among competing opportunities - Answer- d.
establishes guidelines and makes final choices among competing opportunities
,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 - 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 - Answer- a. be indicted for alleged
theft of facility funds and improper expenditures of facility funds for personal reasons.
What type of problem arises when a healthcare executive knowingly allows the organization to continue
double billing?
a. An ethical problem for the healthcare executive, but may not be grounds for dismissal if organizational
policy is not clearly stated.
b. An actual conflict of interest, even absent a direct economic benefit to the healthcare executive.
c. An ethical problem for the employee if the healthcare executive receives direct economic benefit.
d. An ethical problem if it clearly violates state or federal law. - Answer- B
Which of the following is a unit of measure commonly used to determine physicians' clinical
productivity?
a. RVU
b. CMS
c. IPO
d. CPU - Answer- A
, Which of the following third-party reimbursement methods provides the largest financial incentive for the
provider to reduce cost?
a. Charge-based
b. Cost-based
c. Prospective payment
d. Per diem - Answer- C
Statements of earnings, financial positions, changes in financial position and retained earnings are
required to be submitted yearly by all:
a. Publicly owned healthcare organizations.
b. Privately owned healthcare organizations.
c. Government owned healthcare organizations.
d. Faith-based owned healthcare organizations. - Answer- A
Which of the following is an Example of a capital expenditure?
a. Land that is purchased for resale.
b. Surgical equipment with a useful life of six months.
c. A building with a useful life of 20 years.
d. Medical supplies used for patient care. - Answer- C
What is the correct order of stages for accomplishing organization change?
a. Identifying, planning, implementation, evaluation.
b. Planning, identifying, evaluation, implementation.
c. Evaluation, planning, implementation, identifying.
d. Planning, evaluation, identifying, implementation. - Answer- A
