NAB CORE Practice Exam | Questions and Verified Answers| 100% Correct|
Grade A
Question 1
If a medical device malfunctions and causes or contributes to a death or serious injury, the Safe
Medical Devices Act (SMDA) and OSHA guidelines require the administrator to report the
incident to which entity?
A) The Department of Health and Human Services
B) The manufacturing producer
C) The state licensing board
D) The local police department
E) The labor union representative
Correct Answer: B) the manufacturing producer
Rationale: Under the Safe Medical Devices Act, healthcare facilities must report device-
related deaths to the FDA and the manufacturer. If the device "contributes" to a serious
injury, it must be reported to the manufacturer. This ensures that the manufacturer can
investigate the defect and initiate a recall if necessary to protect other care recipients.
Question 2
According to the Life Safety Code, emergency exits must consist of which three specific
components?
A) Exit access (lit corridor), exit door (locked from inside), and exit discharge (public way)
B) Exit sign (lit), exit access (corridor), and exit (double doors)
C) Exit access (lit corridor), exit (the door itself), and exit discharge (access to street or public
way)
D) Exit sign, exit access (lit corridor), and exit door (locked from outside)
E) Exit access (lit corridor), exit (double doors), and exit discharge (three feet of clear sidewalk)
Correct Answer: C) Exit access (lit corridor), exit (the door itself), and exit discharge (access
to street or public way)
Rationale: An exit is not just a door. It is a system. The "exit access" leads the person to the
exit; the "exit" is the protected portion of the path between the access and the discharge;
and the "exit discharge" is the part of the system that leads to a "public way," such as a
street or sidewalk, ensuring the person is safely away from the building.
Question 3
Which of the following Occupational Safety and Health Administration (OSHA) violations is
least likely to be associated with a financial penalty or fine?
A) Serious violation
B) Non-serious violation
C) De minimus violation
, 2
D) Imminent danger
E) Willful violation
Correct Answer: C) De minimus
Rationale: A "De minimus" violation refers to a technical violation of an OSHA standard
that has no direct or immediate relationship to safety or health. For example, if a ladder
rung is spaced slightly incorrectly but poses no danger, OSHA records it but rarely issues a
fine.
Question 4
The administration of the annual budget by the facility administrator is considered which of the
following?
A) A controlling function
B) A task that requires constant intervention by the governing body
C) A strictly clerical duty better suited for staff
D) An optional part of the strategic plan
E) A violation of the articles of incorporation
Correct Answer: A) is a controlling function
Rationale: In the management cycle (Planning, Organizing, Staffing, Directing,
Controlling), the budget acts as the primary "controlling" tool. The administrator
compares actual financial performance against the projected budget to ensure the
organization is staying within its means and meeting its financial goals.
Question 5
Healthcare organizations operate in a unique market. In terms of marketing and business strategy,
they are primarily in the business of selling:
A) Assistance
B) Compassion
C) Wellness
D) Services
E) Medical devices
Correct Answer: D) services
Rationale: Healthcare is a service-based industry. Unlike a product-based industry (like a
car manufacturer), the "product" is the intangible expertise, care, and professional
assistance provided by the staff to the care recipient.
Question 6
A care recipient disagrees with a management decision and feels it adversely affects their health
and safety. The individual or group most responsible for investigating and resolving this concern
as an outside advocate is the:
, 3
A) Social worker
B) Ombudsman
C) Care recipient council president
D) Governing body
E) Director of Nursing
Correct Answer: B) ombudsman
Rationale: The Long-Term Care Ombudsman Program is a federal mandate. The
Ombudsman acts as an independent advocate for care recipients, investigating complaints
and helping to resolve conflicts between the resident and the facility management to protect
the resident's rights.
Question 7
How are "Stakeholders" defined within the context of a healthcare organization?
A) The individuals who have the most to lose financially
B) Any group of investors who own stock in the organization
C) Any constituent group that has an interest in what outcomes the organization produces
D) Only the staff, physicians, and local groups
E) Only the governing body and the administrator
Correct Answer: C) any constituent group that has an interest in what outcomes the
organization produces
Rationale: Stakeholders include anyone affected by the organization. This encompasses care
recipients, their families, employees, vendors, the local community, regulators, and owners.
Management must balance the often-competing interests of all these groups.
Question 8
What is the primary purpose of implementing a Corporate Compliance Plan in a healthcare
setting?
A) To reduce fraud and abuse and to establish internal controls for responsible conduct
B) To avoid charges of price-fixing and violation of anti-kickback statutes only
C) To remove quality indicator flags from the healthcare organization's profile
D) To establish policies for conducting criminal background checks on directors
E) To ensure the facility remains in the five-star rating system
Correct Answer: A) reduce fraud and abuse and to establish internal controls for responsible
organization conduct
Rationale: A compliance plan is a formal process to ensure the facility follows all laws and
regulations (Medicare/Medicaid). It includes having a compliance officer, written
standards, and a "whistleblower" system to catch errors before they lead to federal
investigations for fraud.
, 4
Question 9
The primary benefits of "Management by Walking Around" (MBWA) for an administrator are:
A) Evaluating, controlling, and planning
B) Directing, evaluating, and innovating
C) Listening, teaching, and facilitating
D) Organizing, staffing, and budgeting
E) Disciplining, monitoring, and recording
Correct Answer: C) listening, teaching, and facilitating
Rationale: MBWA is an informal management technique. It allows the administrator to "get
out of the office" and interact with staff and residents. This builds trust (listening), allows
for "teachable moments" (teaching), and helps the administrator remove barriers to care
(facilitating).
Question 10
Which specific function of the management process is characterized by gathering information
and input to determine a course of action?
A) Directing
B) Controlling
C) Organizing
D) Decision-making
E) Staffing
Correct Answer: D) Decision-making
Rationale: Decision-making is the heart of management. It involves identifying a problem,
gathering data and input from stakeholders, evaluating alternatives, and choosing the most
effective path forward.
Question 11
"Management by Walking Around" is an approach that specifically allows the administrator to:
A) See first-hand the needs of the care recipient
B) Control the staff to minimize family complaints
C) Ensure the facility license is never in jeopardy
D) Innovate physical plant improvements for public relations
E) Catch employees in the act of making mistakes
Correct Answer: A) see first-hand the needs of the care recipient
Rationale: While reports and meetings are helpful, they are "filtered" data. By physically
walking through the facility, the administrator can observe the quality of food, the
cleanliness of rooms, and the interactions between staff and residents directly.
Grade A
Question 1
If a medical device malfunctions and causes or contributes to a death or serious injury, the Safe
Medical Devices Act (SMDA) and OSHA guidelines require the administrator to report the
incident to which entity?
A) The Department of Health and Human Services
B) The manufacturing producer
C) The state licensing board
D) The local police department
E) The labor union representative
Correct Answer: B) the manufacturing producer
Rationale: Under the Safe Medical Devices Act, healthcare facilities must report device-
related deaths to the FDA and the manufacturer. If the device "contributes" to a serious
injury, it must be reported to the manufacturer. This ensures that the manufacturer can
investigate the defect and initiate a recall if necessary to protect other care recipients.
Question 2
According to the Life Safety Code, emergency exits must consist of which three specific
components?
A) Exit access (lit corridor), exit door (locked from inside), and exit discharge (public way)
B) Exit sign (lit), exit access (corridor), and exit (double doors)
C) Exit access (lit corridor), exit (the door itself), and exit discharge (access to street or public
way)
D) Exit sign, exit access (lit corridor), and exit door (locked from outside)
E) Exit access (lit corridor), exit (double doors), and exit discharge (three feet of clear sidewalk)
Correct Answer: C) Exit access (lit corridor), exit (the door itself), and exit discharge (access
to street or public way)
Rationale: An exit is not just a door. It is a system. The "exit access" leads the person to the
exit; the "exit" is the protected portion of the path between the access and the discharge;
and the "exit discharge" is the part of the system that leads to a "public way," such as a
street or sidewalk, ensuring the person is safely away from the building.
Question 3
Which of the following Occupational Safety and Health Administration (OSHA) violations is
least likely to be associated with a financial penalty or fine?
A) Serious violation
B) Non-serious violation
C) De minimus violation
, 2
D) Imminent danger
E) Willful violation
Correct Answer: C) De minimus
Rationale: A "De minimus" violation refers to a technical violation of an OSHA standard
that has no direct or immediate relationship to safety or health. For example, if a ladder
rung is spaced slightly incorrectly but poses no danger, OSHA records it but rarely issues a
fine.
Question 4
The administration of the annual budget by the facility administrator is considered which of the
following?
A) A controlling function
B) A task that requires constant intervention by the governing body
C) A strictly clerical duty better suited for staff
D) An optional part of the strategic plan
E) A violation of the articles of incorporation
Correct Answer: A) is a controlling function
Rationale: In the management cycle (Planning, Organizing, Staffing, Directing,
Controlling), the budget acts as the primary "controlling" tool. The administrator
compares actual financial performance against the projected budget to ensure the
organization is staying within its means and meeting its financial goals.
Question 5
Healthcare organizations operate in a unique market. In terms of marketing and business strategy,
they are primarily in the business of selling:
A) Assistance
B) Compassion
C) Wellness
D) Services
E) Medical devices
Correct Answer: D) services
Rationale: Healthcare is a service-based industry. Unlike a product-based industry (like a
car manufacturer), the "product" is the intangible expertise, care, and professional
assistance provided by the staff to the care recipient.
Question 6
A care recipient disagrees with a management decision and feels it adversely affects their health
and safety. The individual or group most responsible for investigating and resolving this concern
as an outside advocate is the:
, 3
A) Social worker
B) Ombudsman
C) Care recipient council president
D) Governing body
E) Director of Nursing
Correct Answer: B) ombudsman
Rationale: The Long-Term Care Ombudsman Program is a federal mandate. The
Ombudsman acts as an independent advocate for care recipients, investigating complaints
and helping to resolve conflicts between the resident and the facility management to protect
the resident's rights.
Question 7
How are "Stakeholders" defined within the context of a healthcare organization?
A) The individuals who have the most to lose financially
B) Any group of investors who own stock in the organization
C) Any constituent group that has an interest in what outcomes the organization produces
D) Only the staff, physicians, and local groups
E) Only the governing body and the administrator
Correct Answer: C) any constituent group that has an interest in what outcomes the
organization produces
Rationale: Stakeholders include anyone affected by the organization. This encompasses care
recipients, their families, employees, vendors, the local community, regulators, and owners.
Management must balance the often-competing interests of all these groups.
Question 8
What is the primary purpose of implementing a Corporate Compliance Plan in a healthcare
setting?
A) To reduce fraud and abuse and to establish internal controls for responsible conduct
B) To avoid charges of price-fixing and violation of anti-kickback statutes only
C) To remove quality indicator flags from the healthcare organization's profile
D) To establish policies for conducting criminal background checks on directors
E) To ensure the facility remains in the five-star rating system
Correct Answer: A) reduce fraud and abuse and to establish internal controls for responsible
organization conduct
Rationale: A compliance plan is a formal process to ensure the facility follows all laws and
regulations (Medicare/Medicaid). It includes having a compliance officer, written
standards, and a "whistleblower" system to catch errors before they lead to federal
investigations for fraud.
, 4
Question 9
The primary benefits of "Management by Walking Around" (MBWA) for an administrator are:
A) Evaluating, controlling, and planning
B) Directing, evaluating, and innovating
C) Listening, teaching, and facilitating
D) Organizing, staffing, and budgeting
E) Disciplining, monitoring, and recording
Correct Answer: C) listening, teaching, and facilitating
Rationale: MBWA is an informal management technique. It allows the administrator to "get
out of the office" and interact with staff and residents. This builds trust (listening), allows
for "teachable moments" (teaching), and helps the administrator remove barriers to care
(facilitating).
Question 10
Which specific function of the management process is characterized by gathering information
and input to determine a course of action?
A) Directing
B) Controlling
C) Organizing
D) Decision-making
E) Staffing
Correct Answer: D) Decision-making
Rationale: Decision-making is the heart of management. It involves identifying a problem,
gathering data and input from stakeholders, evaluating alternatives, and choosing the most
effective path forward.
Question 11
"Management by Walking Around" is an approach that specifically allows the administrator to:
A) See first-hand the needs of the care recipient
B) Control the staff to minimize family complaints
C) Ensure the facility license is never in jeopardy
D) Innovate physical plant improvements for public relations
E) Catch employees in the act of making mistakes
Correct Answer: A) see first-hand the needs of the care recipient
Rationale: While reports and meetings are helpful, they are "filtered" data. By physically
walking through the facility, the administrator can observe the quality of food, the
cleanliness of rooms, and the interactions between staff and residents directly.
