2026 NAB EXAM – EVERYTHING THAT IS NEEDED TO KNOW EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
A line authority position is characterized by - (ANSWER)Decision making vested in the supervisor
An example of line authority is - (ANSWER)Administrator
Major schools of thought regarding source of authority are - (ANSWER)formal and subordinate
acceptance
The scope of authority in the operation of the nursing facility is greatest at which level -
(ANSWER)Ownership
Ultimate authority in a private corporate nursing facility is with the - (ANSWER)Board of directors
Managerial authority is power - (ANSWER)to command, issue orders or exact action by subordinates
Decentralized authority is characterized by - (ANSWER)process of delegating authority
Centralized authority is - (ANSWER)vesting decision making in top managment
Authority vested in a supervisory nurse is - (ANSWER)middle management authority
Decision making authority is when a supervisor - (ANSWER)hires, fires and makes judgmental decisions
Concepts of modern management recommend that an effective administrator will delegate -
(ANSWER)operational authority
Unity of command refers to - (ANSWER)reporting to one supervisor
,2026 NAB EXAM – EVERYTHING THAT IS NEEDED TO KNOW EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
Which of the following forms of business is considered the oldest form of business - (ANSWER)sole
proprietorship
The term proprietorship as it relates to the nursing facility industry means - (ANSWER)privately owned
The majority of nursing facility beds in the united states are owned by - (ANSWER)corporations
Which of the following forms of ownership must have articles drawn up and reduced to writing? -
(ANSWER)corporation
Under which form of ownership would the administrator have the greatest latitude of authority and
decision making? - (ANSWER)Sole proprietorship
All but one are considered advantages of sole proprietorship - (ANSWER)Unlimited liability
All but one are considered disadvantages of a partnership - (ANSWER)Retention of valuable employees
A corporation is - (ANSWER)a legal entity created by law to carry on a business or profession
Which one of the following forms of business ownership is considered the most important? -
(ANSWER)Corporation
A nonprofit corporation is one which - (ANSWER)makes a profit but returns it to the operation of
business
Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing to participate in
medicare must have - (ANSWER)a governing body
,2026 NAB EXAM – EVERYTHING THAT IS NEEDED TO KNOW EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
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
The Code of Federal Regulations 42 CFR part 483 requires that the facility disclose - (ANSWER)officers,
directors, agents, or management employees
The role of the administrator in a modern nursing facility is to - (ANSWER)advise the governing body and
carry out their decisions
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
An objective may be defined as - (ANSWER)organizing
The first step in planning is - (ANSWER)setting the objectives of the organization
Effective management is best carried out by following which method? - (ANSWER)management by
objectives
Management by objectives involves - (ANSWER)plurality of objectives
Which of the following objectives would be considered first in establishing a new nursing facility? -
(ANSWER)Type of facility
An administrator of a proprietary nursing facility should be primarily concerned with which one of the
following objectives? - (ANSWER)Quality of care
Which one of the functions of management would be accomplished first? - (ANSWER)planning
, 2026 NAB EXAM – EVERYTHING THAT IS NEEDED TO KNOW EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
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
Which one of the following statements is true? - (ANSWER)Every department in the nursing facility
should have goals or objectives
Since there is a plurality of objectives in a nursing facility, the facility should concern itself with -
(ANSWER)long and short term goals
Planning is primarily concerned with - (ANSWER)use of facts to determine course of action for the future
Strategic planning - (ANSWER)helps the facility to re evaluate its mission and identify its long term goals.
Planning on a broad scale is carried on primarily by a - (ANSWER)administrator
Planning involves all but one of the following - (ANSWER)personnel decisions
Which of the following is not a function of the administrator? - (ANSWER)ultimate approval of all
policies (governing board does that)
Planning at the top level of management is best characterized as - (ANSWER)broad, far-reaching, and
basic
In the process of planning, which guideline should be followed? - (ANSWER)involve as many managers
as possible
Considering the functions of management such as: directing, organizing, coordination, controlling and
planning, which of these functions would be first? - (ANSWER)planning
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
A line authority position is characterized by - (ANSWER)Decision making vested in the supervisor
An example of line authority is - (ANSWER)Administrator
Major schools of thought regarding source of authority are - (ANSWER)formal and subordinate
acceptance
The scope of authority in the operation of the nursing facility is greatest at which level -
(ANSWER)Ownership
Ultimate authority in a private corporate nursing facility is with the - (ANSWER)Board of directors
Managerial authority is power - (ANSWER)to command, issue orders or exact action by subordinates
Decentralized authority is characterized by - (ANSWER)process of delegating authority
Centralized authority is - (ANSWER)vesting decision making in top managment
Authority vested in a supervisory nurse is - (ANSWER)middle management authority
Decision making authority is when a supervisor - (ANSWER)hires, fires and makes judgmental decisions
Concepts of modern management recommend that an effective administrator will delegate -
(ANSWER)operational authority
Unity of command refers to - (ANSWER)reporting to one supervisor
,2026 NAB EXAM – EVERYTHING THAT IS NEEDED TO KNOW EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
Which of the following forms of business is considered the oldest form of business - (ANSWER)sole
proprietorship
The term proprietorship as it relates to the nursing facility industry means - (ANSWER)privately owned
The majority of nursing facility beds in the united states are owned by - (ANSWER)corporations
Which of the following forms of ownership must have articles drawn up and reduced to writing? -
(ANSWER)corporation
Under which form of ownership would the administrator have the greatest latitude of authority and
decision making? - (ANSWER)Sole proprietorship
All but one are considered advantages of sole proprietorship - (ANSWER)Unlimited liability
All but one are considered disadvantages of a partnership - (ANSWER)Retention of valuable employees
A corporation is - (ANSWER)a legal entity created by law to carry on a business or profession
Which one of the following forms of business ownership is considered the most important? -
(ANSWER)Corporation
A nonprofit corporation is one which - (ANSWER)makes a profit but returns it to the operation of
business
Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing to participate in
medicare must have - (ANSWER)a governing body
,2026 NAB EXAM – EVERYTHING THAT IS NEEDED TO KNOW EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
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
The Code of Federal Regulations 42 CFR part 483 requires that the facility disclose - (ANSWER)officers,
directors, agents, or management employees
The role of the administrator in a modern nursing facility is to - (ANSWER)advise the governing body and
carry out their decisions
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
An objective may be defined as - (ANSWER)organizing
The first step in planning is - (ANSWER)setting the objectives of the organization
Effective management is best carried out by following which method? - (ANSWER)management by
objectives
Management by objectives involves - (ANSWER)plurality of objectives
Which of the following objectives would be considered first in establishing a new nursing facility? -
(ANSWER)Type of facility
An administrator of a proprietary nursing facility should be primarily concerned with which one of the
following objectives? - (ANSWER)Quality of care
Which one of the functions of management would be accomplished first? - (ANSWER)planning
, 2026 NAB EXAM – EVERYTHING THAT IS NEEDED TO KNOW EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
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
Which one of the following statements is true? - (ANSWER)Every department in the nursing facility
should have goals or objectives
Since there is a plurality of objectives in a nursing facility, the facility should concern itself with -
(ANSWER)long and short term goals
Planning is primarily concerned with - (ANSWER)use of facts to determine course of action for the future
Strategic planning - (ANSWER)helps the facility to re evaluate its mission and identify its long term goals.
Planning on a broad scale is carried on primarily by a - (ANSWER)administrator
Planning involves all but one of the following - (ANSWER)personnel decisions
Which of the following is not a function of the administrator? - (ANSWER)ultimate approval of all
policies (governing board does that)
Planning at the top level of management is best characterized as - (ANSWER)broad, far-reaching, and
basic
In the process of planning, which guideline should be followed? - (ANSWER)involve as many managers
as possible
Considering the functions of management such as: directing, organizing, coordination, controlling and
planning, which of these functions would be first? - (ANSWER)planning
