ACHE Practice Exam – American College of
Healthcare Executives – Latest Updated
Questions with Correct Answers | Graded A+
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 Answer-d. 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 Answer-a. 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 Answer-d. 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 Answer-a. 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 Answer-b. 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
Answer-d. 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 Answer-c. 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 Answer-a. 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 Answer-b. 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 Answer-b. 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 Answer-c.
Composition of the governing board, committee, and officers
Successful approaches to strategic planning include:
Healthcare Executives – Latest Updated
Questions with Correct Answers | Graded A+
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 Answer-d. 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 Answer-a. 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 Answer-d. 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 Answer-a. 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 Answer-b. 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
Answer-d. 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 Answer-c. 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 Answer-a. 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 Answer-b. 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 Answer-b. 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 Answer-c.
Composition of the governing board, committee, and officers
Successful approaches to strategic planning include:
