ACHE BOG EXAM SAMPLE TEST-100 QUESTIONS WITH CORRECT ANSWERS GRADED TO PASS

CEO Compensation should be based on: - 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: - approve the mission, vision, and long-range plan The key to enhancing board effectiveness is: - 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: - when not legally prohibited The Chief Executive Officer: - represents the board internally and externally Regarding the budget, the board: - 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: - Governing Body A correct statement regarding trustee serving as fiduciaries is that they can: - 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: - Governing Board A key reason for choosing board members is because: - of what they can do for the organization The bylaws of healthcare organization should include which of the following? - Composition of the governing board, committee, and officers Successful approaches to strategic planning include: - 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: - 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: - the introductory stage can be short and the introductory stage can be long and sales and revenue growth is slow The primary task of marketing is to: - bring about exchanges of values It would be incorrect to say that: - 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: - people differ significantly in their likelihood to try a new product/service, a factor that should affect an organization's communications plans for its new product /service All of the following can be used to establish marketing budgets? - Objective and task method All of the following are methods used to forecast future demands except: - estimation of a competitor's current customer base All of the following statements are true except that: - forecasting, if correctly performed relying on technological forecasting approaches, is an exact science Which of the following environmental assumptions for the next decade is not reasonable? - There will be decreased morbidity (substance abuse, violence, accidents, etc.) Of the following advertising media, which of the potentially has the maximum selectivity in reaching defined target audience? - Direct mail The major value of job analysis is that it is: - the cornerstone of human resources management activities Comparative methods of performance appraisal that compares one manager to another to determine performance ratings: - are times consuming and useful only for relatively small groups of employees A system for providing reward for improvement in productivity should:. - focus on both nonfinancial and financial rewards Vertical job enlargement: - must involve supervisor and subordinate in participative process A stop-gap measure that a health service might use to manage intergroup conflict, which allows people to cool down and regain perspective, is: - smoothing Work groups informally govern the amount and quality of work of individuals within the group through: - performance norms As a minimum, an organization demonstrates "good faith" in collective bargaining with a union by: - receiving union proposals and meeting with the union from time to time to discuss the proposals Large, multidisciplinary work groups with health services organizations are likely to suffer from: - "free-riding" when individuals can benefit from the work of the group without making a suitable contribution The major benefit of integrative dimension of negotiation over the distributive dimension is that the: - amount of resources to be distributed is increased, allowing both parties to reach their reservation prices As managerial vacancies occur, the availability of well-trained individuals who understand the organization's mission, vales, culture and strategy is enhanced by: - the use of an effective succession planning program Capital rationing in the investment decision process refers to the: - decision on which of the proposed capital projects will be funded A positive net present value indicates that the investment has a rate of return: - decision on which of the proposed capital projects will be funded For information on net cash flow from providing health services for a specific time frame, the decision maker should use the: - statement of cash flow Memorial Hospital offers a screening test as a public service for $.50 per test. Variable cost per unit are $.32. Fixed cost are $43,200 per month for the department performing the test. It is the only test done by this special department. the break-even point in the test is: - 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000) The most important factor in the success of the organizational internal control system is: - selection of the internal auditor Hampton Outpatient budgeted revenue from flu vaccinations at $20 per shot. Fixed cost total $5 per unit dose on 4,000 shots and remain unchanged within a relevant range of 1,500 shots to 6,400 shots. Variable cost of $10 per shot. After total revenue was budgets at $70,000, the clinic received a request from the local school district for flu vaccinations for its 1,000 students at a reasonable cost. If Hampton Clinic wants to increase operating income by $2,000, what should Hampton charge for additional shots. - The variable cost plus the incremental profit margin per shot. Financial risk is an element in capital investment decisions and is determined by: - The additional risk placed on the firm when debt financing is used The asset turnover ratio is useful in measuring managerial performance because it indicates the: - amount of resources required to generate a dollar of revenue A weighted average cost of capital is the: - economic cost to the organization of producing all required returns to capital In general, the net present value calculation assume: - borrowing and lending rates are equal with each period The difference between an accounting break-even point and an economic break-even point is that: - the economic break-even point provides the required rate of return to all suppliers of capital to the provider Under the capitation, the risks of over-utilization are shifted to the: - provider of the health service Which of the following ratios would be used to estimate cask flow for a specific time period: - Cash collected during period TO Revenue for period In developing workload measurements for estimating manpower requirements for budget preparation, the analyst should first: - forecast total admissions activity levels and patient days Under generally accepted accounting standards, bad debt are reported as a/an: - operating expense A technique used to shorten the in-house processing time of the accounts receivable cycle is a: - "lock-box" agreement