NAB Exam Questions and Verified Answers Graded A+ 2026/27
A line authority position is characterized by - Decision making vested in the supervisor
An example of line authority is - Administrator
Major schools of thought regarding source of authority are - formal and subordinate
acceptance
The scope of authority in the operation of the nursing facility is greatest at which level -
Ownership
Ultimate authority in a private corporate nursing facility is with the - Board of directors
Managerial authority is power - to command, issue orders or exact action by subordinates
Decentralized authority is characterized by - process of delegating authority
Centralized authority is - vesting decision making in top managment
Authority vested in a supervisory nurse is - middle management authority
,Decision making authority is when a supervisor - hires, fires and makes judgmental
decisions
Concepts of modern management recommend that an effective administrator will delegate -
operational authority
Unity of command refers to - reporting to one supervisor
Which of the following forms of business is considered the oldest form of business - sole
proprietorship
The term proprietorship as it relates to the nursing facility industry means - privately
owned
The majority of nursing facility beds in the united states are owned by - corporations
Which of the following forms of ownership must have articles drawn up and reduced to writing?
- corporation
Under which form of ownership would the administrator have the greatest latitude of authority
and decision making? - Sole proprietorship
All but one are considered advantages of sole proprietorship - Unlimited liability
,All but one are considered disadvantages of a partnership - Retention of valuable
employees
A corporation is - 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? -
Corporation
A nonprofit corporation is one which - 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 - a governing body
The role of the governing body pursuant to the Code of Federal Regulation 42 CFR Part 483 is to
- 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 -
officers, directors, agents, or management employees
The role of the administrator in a modern nursing facility is to - 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 - licensed by the state and responsible for the management of
the facility
An objective may be defined as - organizing
The first step in planning is - setting the objectives of the organization
Effective management is best carried out by following which method? - management by
objectives
Management by objectives involves - plurality of objectives
Which of the following objectives would be considered first in establishing a new nursing
facility? - Type of facility
An administrator of a proprietary nursing facility should be primarily concerned with which one
of the following objectives? - Quality of care
Which one of the functions of management would be accomplished first? - planning
Relative to setting objectives, which task listed below would be of primary importance for the
administrator to accomplish? - constantly review and reassess objectives of the nursing
facility
A line authority position is characterized by - Decision making vested in the supervisor
An example of line authority is - Administrator
Major schools of thought regarding source of authority are - formal and subordinate
acceptance
The scope of authority in the operation of the nursing facility is greatest at which level -
Ownership
Ultimate authority in a private corporate nursing facility is with the - Board of directors
Managerial authority is power - to command, issue orders or exact action by subordinates
Decentralized authority is characterized by - process of delegating authority
Centralized authority is - vesting decision making in top managment
Authority vested in a supervisory nurse is - middle management authority
,Decision making authority is when a supervisor - hires, fires and makes judgmental
decisions
Concepts of modern management recommend that an effective administrator will delegate -
operational authority
Unity of command refers to - reporting to one supervisor
Which of the following forms of business is considered the oldest form of business - sole
proprietorship
The term proprietorship as it relates to the nursing facility industry means - privately
owned
The majority of nursing facility beds in the united states are owned by - corporations
Which of the following forms of ownership must have articles drawn up and reduced to writing?
- corporation
Under which form of ownership would the administrator have the greatest latitude of authority
and decision making? - Sole proprietorship
All but one are considered advantages of sole proprietorship - Unlimited liability
,All but one are considered disadvantages of a partnership - Retention of valuable
employees
A corporation is - 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? -
Corporation
A nonprofit corporation is one which - 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 - a governing body
The role of the governing body pursuant to the Code of Federal Regulation 42 CFR Part 483 is to
- 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 -
officers, directors, agents, or management employees
The role of the administrator in a modern nursing facility is to - 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 - licensed by the state and responsible for the management of
the facility
An objective may be defined as - organizing
The first step in planning is - setting the objectives of the organization
Effective management is best carried out by following which method? - management by
objectives
Management by objectives involves - plurality of objectives
Which of the following objectives would be considered first in establishing a new nursing
facility? - Type of facility
An administrator of a proprietary nursing facility should be primarily concerned with which one
of the following objectives? - Quality of care
Which one of the functions of management would be accomplished first? - planning
Relative to setting objectives, which task listed below would be of primary importance for the
administrator to accomplish? - constantly review and reassess objectives of the nursing
facility
