HCM 388 Final Exam| QUESTIONS WITH VERIFIED ANSWERS 100% SOLVED| LATEST UPDATE
GUARANTEED PASS
Vicarious liability (aka respondeat superior) attachment of responsibility to a person whose
agent caused the plaintiff's injuries
Corporate Liability aka direct liability; simply means the extent to which a corporation is
responsible for the actions of its employees.
Respondeat superior (aka vicarious liability) a doctrine in the law agency that provides that a
principal- employer- is responsible for his/her/its agent-employee- done during employment
Borrowed servant doctrine a legal doctrine in which an employer is held liable for the
actions of a temporary employee
Captain of the ship doctrine established that a surgeon was responsible for any negligent
conduct in the operating room just as the captain of a ship is responsible for the actions of its
crew.
Sole proprietorship an individual assumes all organizational roles: employer, employee, and
owner. Retains any profits, suffers any losses, and bears the full risk of enterprise
General partnership partner receive equal shares of profits or losses, are entitled to equal
voting rights, and are personally liable for debts
Limited partnership provides limited liability to some persons who invest in the
organization, share profits, but do not participate in day-to-day management, Not liable to
creditors for debts
,Corporation an organization formed with government approval to act as an artificial person
to carry on business. Legal entities distinct from the individual who created or manage them,
they fall within the definition of "person"
2010 Citizens United US Supreme Court decision that confirmed corporations' constitutional
rights and held that corporate funding of political broadcast during election campaigns is a form
of free speech
Duties of Governing Board act with due care and loyalty; protect corporate property; avoid
conflicts of interest; set major policies; appoint medical staff members and chief executive
officer (CEO); oversee the quality of care; establish operating budgets;
Fiduciary duties special responsibilities owed to the corporation, its members (if any), and
its intended beneficiaries.
Responsibilities of Governing Board develop policy and strategic plans; appoint senior
administration and medical staff members; delineate clinical privileges; oversee the
professional performance of lay administrators and the medical staff.
Ultra vires any departure from express or implied corporate power
not-for-profit a type of organization in which legal and ethical restrictions prohibit
distribution of profits to owners or shareholders
Charitable immunity a legal doctrine that holds that a charitable organization is not liable
under tort law.
Merger/acquisition the joining of two or more corporations, whereby one or more of the
organizations transfers assets to another (the survivor) and then is dissolved
, Consolidation a transaction in which two or more organizations combine to form a new
corporation, thereby dissolving the predecessor companies
Joint venture a mutual endeavor by two or more organizations for a specific purpose or for a
limited duration. Parties have fiduciary responsibilities to each other; profits and losses shared
according to agreements, each participant may be liable to third parties
Concierge medicine a relationship between a patient and a primary care physician in which
the patient pays an annual fee in return for direct personalizes care, aka boutique medicine
Account Care Organization (ACO) an organization of hospitals and physicians who jointly-
under a shared governance structure-manage, coordinate, and are accountable for the quality
and cots of their Medicare patient's care
Apparent agency closely related doctrines that can be used to counter the independent
contractor defense
Duty of loyalty requires an individual to put the interests of the corporation before self-
interest
Duty of responsibility to act with due care in every activity of the board. Good faith and
honesty are the major tests in determining whether due care has been exercised.
Multihospital systems two or more acute care hospitals that are owned, leased, sponsored,
or contract-managed by a central organization.
GUARANTEED PASS
Vicarious liability (aka respondeat superior) attachment of responsibility to a person whose
agent caused the plaintiff's injuries
Corporate Liability aka direct liability; simply means the extent to which a corporation is
responsible for the actions of its employees.
Respondeat superior (aka vicarious liability) a doctrine in the law agency that provides that a
principal- employer- is responsible for his/her/its agent-employee- done during employment
Borrowed servant doctrine a legal doctrine in which an employer is held liable for the
actions of a temporary employee
Captain of the ship doctrine established that a surgeon was responsible for any negligent
conduct in the operating room just as the captain of a ship is responsible for the actions of its
crew.
Sole proprietorship an individual assumes all organizational roles: employer, employee, and
owner. Retains any profits, suffers any losses, and bears the full risk of enterprise
General partnership partner receive equal shares of profits or losses, are entitled to equal
voting rights, and are personally liable for debts
Limited partnership provides limited liability to some persons who invest in the
organization, share profits, but do not participate in day-to-day management, Not liable to
creditors for debts
,Corporation an organization formed with government approval to act as an artificial person
to carry on business. Legal entities distinct from the individual who created or manage them,
they fall within the definition of "person"
2010 Citizens United US Supreme Court decision that confirmed corporations' constitutional
rights and held that corporate funding of political broadcast during election campaigns is a form
of free speech
Duties of Governing Board act with due care and loyalty; protect corporate property; avoid
conflicts of interest; set major policies; appoint medical staff members and chief executive
officer (CEO); oversee the quality of care; establish operating budgets;
Fiduciary duties special responsibilities owed to the corporation, its members (if any), and
its intended beneficiaries.
Responsibilities of Governing Board develop policy and strategic plans; appoint senior
administration and medical staff members; delineate clinical privileges; oversee the
professional performance of lay administrators and the medical staff.
Ultra vires any departure from express or implied corporate power
not-for-profit a type of organization in which legal and ethical restrictions prohibit
distribution of profits to owners or shareholders
Charitable immunity a legal doctrine that holds that a charitable organization is not liable
under tort law.
Merger/acquisition the joining of two or more corporations, whereby one or more of the
organizations transfers assets to another (the survivor) and then is dissolved
, Consolidation a transaction in which two or more organizations combine to form a new
corporation, thereby dissolving the predecessor companies
Joint venture a mutual endeavor by two or more organizations for a specific purpose or for a
limited duration. Parties have fiduciary responsibilities to each other; profits and losses shared
according to agreements, each participant may be liable to third parties
Concierge medicine a relationship between a patient and a primary care physician in which
the patient pays an annual fee in return for direct personalizes care, aka boutique medicine
Account Care Organization (ACO) an organization of hospitals and physicians who jointly-
under a shared governance structure-manage, coordinate, and are accountable for the quality
and cots of their Medicare patient's care
Apparent agency closely related doctrines that can be used to counter the independent
contractor defense
Duty of loyalty requires an individual to put the interests of the corporation before self-
interest
Duty of responsibility to act with due care in every activity of the board. Good faith and
honesty are the major tests in determining whether due care has been exercised.
Multihospital systems two or more acute care hospitals that are owned, leased, sponsored,
or contract-managed by a central organization.
