FACHE PRACTICE TEST CERTIFICATION
REVIEW 2026 114 QUESTIONS FULL
SOLUTIONS GUARANTEED PASS
⩥ Barriers to entry. Answer: Obstacles that impede an organization as it
seeks to enter a market
⩥ Branding. Answer: A community-wide communication effort to
convey the mission and the competitive advantage of an organization
⩥ Breach of contract. Answer: A contracting party's failure or refusal to
perform its obligations specified in a contract
⩥ Business model. Answer: The underlying structure of an organization;
the means through which an organization creates and delivers value to
its customers and earns revenues
⩥ Business plan. Answer: A model of a specific strategy or function that
guides design, operations, and goal setting
⩥ Certificate of need. Answer: Certificate or approval for new services
and for construction or renovation of hospitals or related facilities;
issued in many states
,⩥ Collective bargaining. Answer: An activity whereby union and
management officials attempt to resolve conflicting interests in a manner
that will sustain and possibly enrich their continuing relationships
⩥ Contract. Answer: A voluntary, deliberate, and legally binding
agreement between two or more competent parties; usually written but
sometimes spoken or implied
⩥ Core competencies. Answer: The internal activities and functions
central to fulfilling an organization's mission; strategically valuable, they
are the essence of what makes the organization unique in providing
value to its customers
⩥ Crisis communications plan. Answer: A process for disseminating
information to all organizational stakeholders in the event of an
emergency
⩥ Defamation. Answer: The act of making untrue statements about
another that damage the person's reputation; written defamation is libel,
and oral defamation is slander
⩥ Distruptive innovation. Answer: Innovation that creates a new market
by discovering new categories of customers, eventually displacing the
existing market; occurs when new technologies are harnessed or when
new business models exploit old technologies
,⩥ Economies of scale. Answer: Reductions in unit cost as a result of an
increase in number of products or services produced
⩥ First movers. Answer: Organizations that consistently search for
innovation opportunities and attempt to gain competitive advantages by
being among the first to enter a new market or industry
⩥ Five Forces model. Answer: A framework devised by Harvard
economist Michael Porter for analyzing the degree of competition in a
market and the ability of established organizations to influence prices
⩥ Forecasting. Answer: Use of data from the past and present to analyze
trends and predict the future; also called scenario planning
⩥ Four basic types of market structure. Answer: Perfection competition,
monopolistic competition, oligopoly, monopoly; each type reflects the
number of organizations in a market and their degree of market
influence
⩥ Four Ps. Answer: Four attributes that have traditionally been used to
establish an organization's market position: product, price, promotion,
and place
⩥ Gantt chart. Answer: A bar chart that lays out the schedules, steps, and
time frames of a project or projects
, ⩥ Gap analysis. Answer: A method of identifying the distance between
an organization's current position and its desired position with regard to
its mission, vision, and values
⩥ Generic strategies. Answer: Commonly used strategies that combine a
target market (e.g., a small segment of a population) and a type of
differentiation (e.g., low cost)
⩥ Healthcare disparities. Answer: Differences in access to or availability
of healthcare facilities and services; related but different, health
disparities refer to variation in the rates of disease occurrence and
disabilities among socioeconomic, geographic, social, cultural, and
sexual- or gender identify-defined population groups
⩥ Herfindahl-Hirschman Index. Answer: A measure of market
concentration calculated by squaring the market share percentage of
each organization in a market and then summing the numbers
⩥ Horizontal expansion. Answer: The acquisition or merger of two or
more organizations that produce similar products or services
⩥ Internal environmental analysis. Answer: Evaluation of an
organization's products, assets, operations, and other factors to determine
whether the organization is carrying out its mission effectively and
efficiently
REVIEW 2026 114 QUESTIONS FULL
SOLUTIONS GUARANTEED PASS
⩥ Barriers to entry. Answer: Obstacles that impede an organization as it
seeks to enter a market
⩥ Branding. Answer: A community-wide communication effort to
convey the mission and the competitive advantage of an organization
⩥ Breach of contract. Answer: A contracting party's failure or refusal to
perform its obligations specified in a contract
⩥ Business model. Answer: The underlying structure of an organization;
the means through which an organization creates and delivers value to
its customers and earns revenues
⩥ Business plan. Answer: A model of a specific strategy or function that
guides design, operations, and goal setting
⩥ Certificate of need. Answer: Certificate or approval for new services
and for construction or renovation of hospitals or related facilities;
issued in many states
,⩥ Collective bargaining. Answer: An activity whereby union and
management officials attempt to resolve conflicting interests in a manner
that will sustain and possibly enrich their continuing relationships
⩥ Contract. Answer: A voluntary, deliberate, and legally binding
agreement between two or more competent parties; usually written but
sometimes spoken or implied
⩥ Core competencies. Answer: The internal activities and functions
central to fulfilling an organization's mission; strategically valuable, they
are the essence of what makes the organization unique in providing
value to its customers
⩥ Crisis communications plan. Answer: A process for disseminating
information to all organizational stakeholders in the event of an
emergency
⩥ Defamation. Answer: The act of making untrue statements about
another that damage the person's reputation; written defamation is libel,
and oral defamation is slander
⩥ Distruptive innovation. Answer: Innovation that creates a new market
by discovering new categories of customers, eventually displacing the
existing market; occurs when new technologies are harnessed or when
new business models exploit old technologies
,⩥ Economies of scale. Answer: Reductions in unit cost as a result of an
increase in number of products or services produced
⩥ First movers. Answer: Organizations that consistently search for
innovation opportunities and attempt to gain competitive advantages by
being among the first to enter a new market or industry
⩥ Five Forces model. Answer: A framework devised by Harvard
economist Michael Porter for analyzing the degree of competition in a
market and the ability of established organizations to influence prices
⩥ Forecasting. Answer: Use of data from the past and present to analyze
trends and predict the future; also called scenario planning
⩥ Four basic types of market structure. Answer: Perfection competition,
monopolistic competition, oligopoly, monopoly; each type reflects the
number of organizations in a market and their degree of market
influence
⩥ Four Ps. Answer: Four attributes that have traditionally been used to
establish an organization's market position: product, price, promotion,
and place
⩥ Gantt chart. Answer: A bar chart that lays out the schedules, steps, and
time frames of a project or projects
, ⩥ Gap analysis. Answer: A method of identifying the distance between
an organization's current position and its desired position with regard to
its mission, vision, and values
⩥ Generic strategies. Answer: Commonly used strategies that combine a
target market (e.g., a small segment of a population) and a type of
differentiation (e.g., low cost)
⩥ Healthcare disparities. Answer: Differences in access to or availability
of healthcare facilities and services; related but different, health
disparities refer to variation in the rates of disease occurrence and
disabilities among socioeconomic, geographic, social, cultural, and
sexual- or gender identify-defined population groups
⩥ Herfindahl-Hirschman Index. Answer: A measure of market
concentration calculated by squaring the market share percentage of
each organization in a market and then summing the numbers
⩥ Horizontal expansion. Answer: The acquisition or merger of two or
more organizations that produce similar products or services
⩥ Internal environmental analysis. Answer: Evaluation of an
organization's products, assets, operations, and other factors to determine
whether the organization is carrying out its mission effectively and
efficiently
