Past Questions From ACHE's Board of
Governors Exam CORRECTLY ANSWERED
Course
ACHE FACHE
✅ 1. Question: Leadership – Change Management
Which of the following is the best strategy for a leader to manage resistance during a major
organizational change?
A. Ignore resistant staff to avoid conflict
B. Implement change quickly without staff input
C. Communicate early and involve stakeholders
D. Emphasize financial benefits of the change
Correct Answer: C. Communicate early and involve stakeholders
Rationale:
Effective leaders manage resistance by engaging staff early, communicating transparently,
and encouraging shared ownership of change.
✅ 2. Question: Healthcare Finance
Which financial statement provides a snapshot of an organization’s assets, liabilities, and
equity at a given point in time?
A. Income statement
B. Statement of operations
C. Balance sheet
D. Statement of cash flows
Correct Answer: C. Balance sheet
Rationale:
The balance sheet shows the financial position of an organization on a specific date, listing
assets = liabilities + equity.
✅ 3. Question: Ethics – Conflict of Interest
A hospital administrator is evaluating vendors for a new lab service. One vendor is owned by a
close family friend. What should the administrator do?
,A. Choose the friend’s company due to trust
B. Exclude the friend’s company without review
C. Disclose the relationship and recuse from the decision
D. Ask the friend for a discount before proceeding
Correct Answer: C. Disclose the relationship and recuse from the decision
Rationale:
To maintain ethical transparency, potential conflicts of interest must be disclosed, and
decision-makers should recuse themselves.
✅ 4. Question: Laws & Regulations
Which law protects patient health information and governs the sharing of personal medical
data?
A. HITECH Act
B. HIPAA
C. EMTALA
D. COBRA
Correct Answer: B. HIPAA
Rationale:
HIPAA (Health Insurance Portability and Accountability Act) protects the privacy and security
of patient health information.
✅ 5. Question: Quality Improvement
In the Plan-Do-Study-Act (PDSA) cycle, what occurs during the "Do" phase?
A. Analyze the data
B. Develop a plan for change
C. Implement the plan on a small scale
D. Standardize the new process
Correct Answer: C. Implement the plan on a small scale
Rationale:
The "Do" phase involves testing the plan in a small-scale trial to assess effectiveness before
wider implementation.
✅ 6. Question: Strategic Planning
,What is the primary purpose of conducting an environmental scan during strategic planning?
A. To analyze internal weaknesses only
B. To determine staff satisfaction
C. To identify external opportunities and threats
D. To allocate budget resources
Correct Answer: C. To identify external opportunities and threats
Rationale:
An environmental scan is part of a SWOT analysis, helping organizations align strategy with
external trends and risks.
✅ 7. Question: Governance
Which of the following is a fiduciary responsibility of a healthcare organization's Board of
Directors?
A. Approving daily clinical schedules
B. Directly managing staff
C. Ensuring financial oversight and accountability
D. Marketing services to the public
Correct Answer: C. Ensuring financial oversight and accountability
Rationale:
The Board is legally responsible for protecting the organization’s assets, ensuring sound
financial practices, and overseeing leadership.
✅ 8. Question: Operations Management
A hospital wants to reduce patient wait times in the emergency department. Which tool is best
used to map out patient flow and identify bottlenecks?
A. Fishbone diagram
B. Control chart
C. Flowchart
D. Scatter plot
Correct Answer: C. Flowchart
Rationale:
A flowchart helps visualize the entire process, making it easier to pinpoint where delays or
inefficiencies occur.
, ✅ 9. Question: Human Resources
Which is the best approach to improving employee engagement in a healthcare organization?
A. Increase salaries only
B. Limit team feedback to management
C. Provide professional development opportunities
D. Mandate overtime during staff shortages
Correct Answer: C. Provide professional development opportunities
Rationale:
Engagement improves when staff feel valued and invested in, which is supported by career
growth, learning, and recognition.
✅ 10. Question: Population Health
Which of the following is a social determinant of health?
A. Genetic mutation
B. Smoking history
C. Health literacy
D. Prescription drug use
Correct Answer: C. Health literacy
Rationale:
Social determinants of health (SDOH) include education, income, environment, and health
literacy, all of which impact health outcomes.
✅ 11. Question: Financial Management
Which of the following tools is used to analyze the profitability of a specific service line in a
healthcare organization?
A. Benchmarking
B. Cost-volume-profit analysis
C. SWOT analysis
D. Variance report
Correct Answer: B. Cost-volume-profit analysis
Rationale:
CVP analysis helps determine the break-even point and profitability based on volume and
cost, useful in service line planning.
Governors Exam CORRECTLY ANSWERED
Course
ACHE FACHE
✅ 1. Question: Leadership – Change Management
Which of the following is the best strategy for a leader to manage resistance during a major
organizational change?
A. Ignore resistant staff to avoid conflict
B. Implement change quickly without staff input
C. Communicate early and involve stakeholders
D. Emphasize financial benefits of the change
Correct Answer: C. Communicate early and involve stakeholders
Rationale:
Effective leaders manage resistance by engaging staff early, communicating transparently,
and encouraging shared ownership of change.
✅ 2. Question: Healthcare Finance
Which financial statement provides a snapshot of an organization’s assets, liabilities, and
equity at a given point in time?
A. Income statement
B. Statement of operations
C. Balance sheet
D. Statement of cash flows
Correct Answer: C. Balance sheet
Rationale:
The balance sheet shows the financial position of an organization on a specific date, listing
assets = liabilities + equity.
✅ 3. Question: Ethics – Conflict of Interest
A hospital administrator is evaluating vendors for a new lab service. One vendor is owned by a
close family friend. What should the administrator do?
,A. Choose the friend’s company due to trust
B. Exclude the friend’s company without review
C. Disclose the relationship and recuse from the decision
D. Ask the friend for a discount before proceeding
Correct Answer: C. Disclose the relationship and recuse from the decision
Rationale:
To maintain ethical transparency, potential conflicts of interest must be disclosed, and
decision-makers should recuse themselves.
✅ 4. Question: Laws & Regulations
Which law protects patient health information and governs the sharing of personal medical
data?
A. HITECH Act
B. HIPAA
C. EMTALA
D. COBRA
Correct Answer: B. HIPAA
Rationale:
HIPAA (Health Insurance Portability and Accountability Act) protects the privacy and security
of patient health information.
✅ 5. Question: Quality Improvement
In the Plan-Do-Study-Act (PDSA) cycle, what occurs during the "Do" phase?
A. Analyze the data
B. Develop a plan for change
C. Implement the plan on a small scale
D. Standardize the new process
Correct Answer: C. Implement the plan on a small scale
Rationale:
The "Do" phase involves testing the plan in a small-scale trial to assess effectiveness before
wider implementation.
✅ 6. Question: Strategic Planning
,What is the primary purpose of conducting an environmental scan during strategic planning?
A. To analyze internal weaknesses only
B. To determine staff satisfaction
C. To identify external opportunities and threats
D. To allocate budget resources
Correct Answer: C. To identify external opportunities and threats
Rationale:
An environmental scan is part of a SWOT analysis, helping organizations align strategy with
external trends and risks.
✅ 7. Question: Governance
Which of the following is a fiduciary responsibility of a healthcare organization's Board of
Directors?
A. Approving daily clinical schedules
B. Directly managing staff
C. Ensuring financial oversight and accountability
D. Marketing services to the public
Correct Answer: C. Ensuring financial oversight and accountability
Rationale:
The Board is legally responsible for protecting the organization’s assets, ensuring sound
financial practices, and overseeing leadership.
✅ 8. Question: Operations Management
A hospital wants to reduce patient wait times in the emergency department. Which tool is best
used to map out patient flow and identify bottlenecks?
A. Fishbone diagram
B. Control chart
C. Flowchart
D. Scatter plot
Correct Answer: C. Flowchart
Rationale:
A flowchart helps visualize the entire process, making it easier to pinpoint where delays or
inefficiencies occur.
, ✅ 9. Question: Human Resources
Which is the best approach to improving employee engagement in a healthcare organization?
A. Increase salaries only
B. Limit team feedback to management
C. Provide professional development opportunities
D. Mandate overtime during staff shortages
Correct Answer: C. Provide professional development opportunities
Rationale:
Engagement improves when staff feel valued and invested in, which is supported by career
growth, learning, and recognition.
✅ 10. Question: Population Health
Which of the following is a social determinant of health?
A. Genetic mutation
B. Smoking history
C. Health literacy
D. Prescription drug use
Correct Answer: C. Health literacy
Rationale:
Social determinants of health (SDOH) include education, income, environment, and health
literacy, all of which impact health outcomes.
✅ 11. Question: Financial Management
Which of the following tools is used to analyze the profitability of a specific service line in a
healthcare organization?
A. Benchmarking
B. Cost-volume-profit analysis
C. SWOT analysis
D. Variance report
Correct Answer: B. Cost-volume-profit analysis
Rationale:
CVP analysis helps determine the break-even point and profitability based on volume and
cost, useful in service line planning.
