ACHE Board of Governors Healthcare Exam
PDF – Study Guide
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 - correct answersd. 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 - correct answersa. 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 - correct answersd. 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 - correct answersa. 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 - correct answersb. 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 -
correct answersd. 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 - correct answersc. 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 - correct answersa.
be indicted for alleged theft of facility funds and improper expenditures of facility funds
for personal reasons.
Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO - correct answersb. Governing Board
A key reason for choosing board members is because:
a. other board members want to listen to their opinions.
b. of what they can do for the organization
c. have high status in the community
c. physicians will listen to them they can - correct answersb. of what they can do for the
organization
The bylaws of healthcare organization should include which of the following?
a. Committee scope and function
b. The privileges of the medical staff
c. The names of the stockholders in the organization
c. Composition of the governing board, committee, and officers - correct answersc.
Composition of the governing board, committee, and officers
Successful approaches to strategic planning include:
a. a well-written mission statement, long-range plane, and fiscal plan plus the history
and discussion surrounding them
b. avoidance of high risk decision
c. not paying attention to competitor's activity
, d. using rules and past experiences as a guide to future action - correct answersa. a
well-written mission statement, long-range plane, and fiscal plan plus the history and
discussion surrounding them
The primary challenge facing a prospector is:
a. protecting and increasing current services (product) or market share through
technical efficiency, cost improvements, or differentiation strategies
b. managing diversification successfully, to guard against expanding too rapidly or into
areas they have little knowledge
c. managing simultaneously the difficult task of pursuing new markets and services
while avoiding erosion of current services in existing markets
d. creating stability by sticking with strategic plan long enough to accumulate experience
and to develop consistent leadership avoiding random diversification efforts. - correct
answersb. managing diversification successfully, to guard against expanding too rapidly
or into areas they have little knowledge
In the introductory stage of a product life cycle:
a. the introductory stage can be short
b. the introductory stage can be long
c. sales and revenue growth is slow
c. all of the above - correct answersc. all of the above
The primary task of marketing is to:
a. bring about voluntary and involuntary exchanges of value
b. attract new advertiser
c. bring about exchanges of values
d. advertise new and existing services - correct answersc. bring about exchanges of
values
It would be incorrect to say that:
a. an organization's image is a function of all that the organization has done as well as
what it has attempted to communicate
b. people's images of an organization always reflects their true attitudes toward the
organization
c. an organization's image is largely the result of public relations, advertising, selling,
and communication efforts.
d. responsibility for the creation of the organization's image does not lie merely with the
marketer - correct answersc. an organization's image is largely the result of public
relations, advertising, selling, and communication efforts.
It is important to understand the consumer adoption process because:
a. the organization may be able to convince the consumer to pass over awareness,
interest, the evaluation stages, moving directly to trail.
b. it is important to have the communications plan for new products/services address
the late majority and laggards as well as the innovators
PDF – Study Guide
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 - correct answersd. 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 - correct answersa. 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 - correct answersd. 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 - correct answersa. 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 - correct answersb. 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 -
correct answersd. 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 - correct answersc. 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 - correct answersa.
be indicted for alleged theft of facility funds and improper expenditures of facility funds
for personal reasons.
Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO - correct answersb. Governing Board
A key reason for choosing board members is because:
a. other board members want to listen to their opinions.
b. of what they can do for the organization
c. have high status in the community
c. physicians will listen to them they can - correct answersb. of what they can do for the
organization
The bylaws of healthcare organization should include which of the following?
a. Committee scope and function
b. The privileges of the medical staff
c. The names of the stockholders in the organization
c. Composition of the governing board, committee, and officers - correct answersc.
Composition of the governing board, committee, and officers
Successful approaches to strategic planning include:
a. a well-written mission statement, long-range plane, and fiscal plan plus the history
and discussion surrounding them
b. avoidance of high risk decision
c. not paying attention to competitor's activity
, d. using rules and past experiences as a guide to future action - correct answersa. a
well-written mission statement, long-range plane, and fiscal plan plus the history and
discussion surrounding them
The primary challenge facing a prospector is:
a. protecting and increasing current services (product) or market share through
technical efficiency, cost improvements, or differentiation strategies
b. managing diversification successfully, to guard against expanding too rapidly or into
areas they have little knowledge
c. managing simultaneously the difficult task of pursuing new markets and services
while avoiding erosion of current services in existing markets
d. creating stability by sticking with strategic plan long enough to accumulate experience
and to develop consistent leadership avoiding random diversification efforts. - correct
answersb. managing diversification successfully, to guard against expanding too rapidly
or into areas they have little knowledge
In the introductory stage of a product life cycle:
a. the introductory stage can be short
b. the introductory stage can be long
c. sales and revenue growth is slow
c. all of the above - correct answersc. all of the above
The primary task of marketing is to:
a. bring about voluntary and involuntary exchanges of value
b. attract new advertiser
c. bring about exchanges of values
d. advertise new and existing services - correct answersc. bring about exchanges of
values
It would be incorrect to say that:
a. an organization's image is a function of all that the organization has done as well as
what it has attempted to communicate
b. people's images of an organization always reflects their true attitudes toward the
organization
c. an organization's image is largely the result of public relations, advertising, selling,
and communication efforts.
d. responsibility for the creation of the organization's image does not lie merely with the
marketer - correct answersc. an organization's image is largely the result of public
relations, advertising, selling, and communication efforts.
It is important to understand the consumer adoption process because:
a. the organization may be able to convince the consumer to pass over awareness,
interest, the evaluation stages, moving directly to trail.
b. it is important to have the communications plan for new products/services address
the late majority and laggards as well as the innovators
