NAB EXAM- EVERYTHING THAT IS NEEDED TO KNOW EXAM QUESTIONS AND ANSWERS. VERIFIED 2025/2026

NAB EXAM- EVERYTHING THAT IS
NEEDED TO KNOW EXAM QUESTIONS
AND ANSWERS. VERIFIED 2025/2026.




A line authority position is characterized by - ANS Decision making vested in the supervisor



An example of line authority is - ANS Administrator



Major schools of thought regarding source of authority are - ANS formal and subordinate
acceptance



The scope of authority in the operation of the nursing facility is greatest at which level -
ANS Ownership



Ultimate authority in a private corporate nursing facility is with the - ANS Board of directors



Managerial authority is power - ANS to command, issue orders or exact action by
subordinates



Decentralized authority is characterized by - ANS process of delegating authority




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,Centralized authority is - ANS vesting decision making in top managment



Authority vested in a supervisory nurse is - ANS middle management authority



Decision making authority is when a supervisor - ANS hires, fires and makes judgmental
decisions



Concepts of modern management recommend that an effective administrator will delegate -
ANS operational authority



Unity of command refers to - ANS reporting to one supervisor



Which of the following forms of business is considered the oldest form of business - ANS sole
proprietorship



The term proprietorship as it relates to the nursing facility industry means - ANS privately
owned



The majority of nursing facility beds in the united states are owned by - ANS corporations



Which of the following forms of ownership must have articles drawn up and reduced to writing?
- ANS corporation



Under which form of ownership would the administrator have the greatest latitude of authority
and decision making? - ANS Sole proprietorship



All but one are considered advantages of sole proprietorship - ANS Unlimited liability

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,All but one are considered disadvantages of a partnership - ANS Retention of valuable
employees



A corporation is - ANS 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? -
ANS Corporation



A nonprofit corporation is one which - ANS 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 - ANS a governing body



The role of the governing body pursuant to the Code of Federal Regulation 42 CFR Part 483 is to
- ANS 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 -
ANS officers, directors, agents, or management employees



The role of the administrator in a modern nursing facility is to - ANS 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 - ANS licensed by the state and responsible for the management
of the facility




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, An objective may be defined as - ANS organizing



The first step in planning is - ANS setting the objectives of the organization



Effective management is best carried out by following which method? - ANS management by
objectives



Management by objectives involves - ANS plurality of objectives



Which of the following objectives would be considered first in establishing a new nursing
facility? - ANS Type of facility



An administrator of a proprietary nursing facility should be primarily concerned with which one
of the following objectives? - ANS Quality of care



Which one of the functions of management would be accomplished first? - ANS planning



Relative to setting objectives, which task listed below would be of primary importance for the
administrator to accomplish? - ANS constantly review and reassess objectives of the nursing
facility



Which one of the following statements is true? - ANS Every department in the nursing facility
should have goals or objectives



Since there is a plurality of objectives in a nursing facility, the facility should concern itself with -
ANS long and short term goals




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