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Fellow of the American College of Healthcare
Executives (FACHE) Board of Governors Exam
Questions and Answers with Complete Solutions
Bargining Unit - ANSWER>>A group of employees recognized by the National
Labor Relations Board to be an appropriate body for collective bargaining
under the National Labor Relations Act.
Barriers to entry - ANSWER>>Obstacles that impede an organization as it
seeks to enter a market
Branding - ANSWER>>A community-wide communication effort to convey
the mission and the competitive advantage of an organization
Breach of contract - ANSWER>>A contracting party's failure or refusal to
perform its obligations specified in a contract
Business model - ANSWER>>The underlying structure of an organization; the
means through which an organization creates and delivers value to its
customers and earns revenues
Business plan - ANSWER>>A model of a specific strategy or function that
guides design, operations, and goal setting
Certificate of need - ANSWER>>Certificate or approval for new services and
for construction or renovation of hospitals or related facilities; issued in
many states
Collective bargaining - ANSWER>>An activity whereby union and
management officials attempt to resolve conflicting interests in a manner
that will sustain and possibly enrich their continuing relationships
,Page 2 of 48
Contract - ANSWER>>A voluntary, deliberate, and legally binding agreement
between two or more competent parties; usually written but sometimes
spoken or implied
Core competencies - ANSWER>>The internal activities and functions central
to fulfilling an organization's mission; strategically valuable, they are the
essence of what makes the organization unique in providing value to its
customers
Crisis communications plan - ANSWER>>A process for disseminating
information to all organizational stakeholders in the event of an emergency
Defamation - ANSWER>>The act of making untrue statements about another
that damage the person's reputation; written defamation is libel, and oral
defamation is slander
Distruptive innovation - ANSWER>>Innovation that creates a new market by
discovering new categories of customers, eventually displacing the existing
market; occurs when new technologies are harnessed or when new business
models exploit old technologies
Economies of scale - ANSWER>>Reductions in unit cost as a result of an
increase in number of products or services produced
First movers - ANSWER>>Organizations that consistently search for
innovation opportunities and attempt to gain competitive advantages by
being among the first to enter a new market or industry
Five Forces model - ANSWER>>A framework devised by Harvard economist
Michael Porter for analyzing the degree of competition in a market and the
ability of established organizations to influence prices
Forecasting - ANSWER>>Use of data from the past and present to analyze
trends and predict the future; also called scenario planning
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Four basic types of market structure - ANSWER>>Perfection competition,
monopolistic competition, oligopoly, monopoly; each type reflects the
number of organizations in a market and their degree of market influence
Four Ps - ANSWER>>Four attributes that have traditionally been used to
establish an organization's market position: product, price, promotion, and
place
Gantt chart - ANSWER>>A bar chart that lays out the schedules, steps, and
time frames of a project or projects
Gap analysis - ANSWER>>A method of identifying the distance between an
organization's current position and its desired position with regard to its
mission, vision, and values
Generic strategies - ANSWER>>Commonly used strategies that combine a
target market (e.g., a small segment of a population) and a type of
differentiation (e.g., low cost)
Healthcare disparities - ANSWER>>Differences in access to or availability of
healthcare facilities and services; related but different, health disparities
refer to variation in the rates of disease occurrence and disabilities among
socioeconomic, geographic, social, cultural, and sexual- or gender identify-
defined population groups
Herfindahl-Hirschman Index - ANSWER>>A measure of market concentration
calculated by squaring the market share percentage of each organization in a
market and then summing the numbers
Horizontal expansion - ANSWER>>The acquisition or merger of two or more
organizations that produce similar products or services
Internal environmental analysis - ANSWER>>Evaluation of an organization's
products, assets, operations, and other factors to determine whether the
organization is carrying out its mission effectively and efficiently
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Malfeasance - ANSWER>>Wrongdoing or improper and dishonest conduct,
especially by a person who holds public office or a position of trust
Market share - ANSWER>>The percentage of total sales volume in a market
captured by a brand, product, service, or company
Market structure - ANSWER>>The organizational characteristics of a market
that exert a strategic influence on the intensity and form of competition
Marketing - ANSWER>>The deliberate effort to establish fruitful relationships
with exchange partners and stakeholders
Portfolio analysis - ANSWER>>A method of assessing an organization's
products or strategic business units that considers various factors, including
competitive position, profitability, growth, and mission importance
Product (or service) life cycle - ANSWER>>Four distinct but not wholly
predictable stages every product or services goes through: introduction to
the market; growth in utilization and revenue; maturity, when utilization and
revenue stabilize; and decline, when utilization and revenue start to fall and
eventually become too little for the product or service to remain viable
Project charter - ANSWER>>A tool commonly used in project management to
clarify the key components of a project (e.g., scope, desired outcomes,
participants, resources, time frames, responsible parties) and to ensure that
the product's definition and desired outcomes coincide with an
organization's strategic priorities and goals
Scenario analysis - ANSWER>>A technique of proposing alternative futures
that could come to pass if a specified environmental change occurs; used by
leaders to better understand and plan for future contingencies
Segmentation - ANSWER>>The division of a market into subsets of
consumers with similar needs and wants; enables marketers to focus their
marketing efforts on consumers mostly likely to buy a project or use a service
Fellow of the American College of Healthcare
Executives (FACHE) Board of Governors Exam
Questions and Answers with Complete Solutions
Bargining Unit - ANSWER>>A group of employees recognized by the National
Labor Relations Board to be an appropriate body for collective bargaining
under the National Labor Relations Act.
Barriers to entry - ANSWER>>Obstacles that impede an organization as it
seeks to enter a market
Branding - ANSWER>>A community-wide communication effort to convey
the mission and the competitive advantage of an organization
Breach of contract - ANSWER>>A contracting party's failure or refusal to
perform its obligations specified in a contract
Business model - ANSWER>>The underlying structure of an organization; the
means through which an organization creates and delivers value to its
customers and earns revenues
Business plan - ANSWER>>A model of a specific strategy or function that
guides design, operations, and goal setting
Certificate of need - ANSWER>>Certificate or approval for new services and
for construction or renovation of hospitals or related facilities; issued in
many states
Collective bargaining - ANSWER>>An activity whereby union and
management officials attempt to resolve conflicting interests in a manner
that will sustain and possibly enrich their continuing relationships
,Page 2 of 48
Contract - ANSWER>>A voluntary, deliberate, and legally binding agreement
between two or more competent parties; usually written but sometimes
spoken or implied
Core competencies - ANSWER>>The internal activities and functions central
to fulfilling an organization's mission; strategically valuable, they are the
essence of what makes the organization unique in providing value to its
customers
Crisis communications plan - ANSWER>>A process for disseminating
information to all organizational stakeholders in the event of an emergency
Defamation - ANSWER>>The act of making untrue statements about another
that damage the person's reputation; written defamation is libel, and oral
defamation is slander
Distruptive innovation - ANSWER>>Innovation that creates a new market by
discovering new categories of customers, eventually displacing the existing
market; occurs when new technologies are harnessed or when new business
models exploit old technologies
Economies of scale - ANSWER>>Reductions in unit cost as a result of an
increase in number of products or services produced
First movers - ANSWER>>Organizations that consistently search for
innovation opportunities and attempt to gain competitive advantages by
being among the first to enter a new market or industry
Five Forces model - ANSWER>>A framework devised by Harvard economist
Michael Porter for analyzing the degree of competition in a market and the
ability of established organizations to influence prices
Forecasting - ANSWER>>Use of data from the past and present to analyze
trends and predict the future; also called scenario planning
,Page 3 of 48
Four basic types of market structure - ANSWER>>Perfection competition,
monopolistic competition, oligopoly, monopoly; each type reflects the
number of organizations in a market and their degree of market influence
Four Ps - ANSWER>>Four attributes that have traditionally been used to
establish an organization's market position: product, price, promotion, and
place
Gantt chart - ANSWER>>A bar chart that lays out the schedules, steps, and
time frames of a project or projects
Gap analysis - ANSWER>>A method of identifying the distance between an
organization's current position and its desired position with regard to its
mission, vision, and values
Generic strategies - ANSWER>>Commonly used strategies that combine a
target market (e.g., a small segment of a population) and a type of
differentiation (e.g., low cost)
Healthcare disparities - ANSWER>>Differences in access to or availability of
healthcare facilities and services; related but different, health disparities
refer to variation in the rates of disease occurrence and disabilities among
socioeconomic, geographic, social, cultural, and sexual- or gender identify-
defined population groups
Herfindahl-Hirschman Index - ANSWER>>A measure of market concentration
calculated by squaring the market share percentage of each organization in a
market and then summing the numbers
Horizontal expansion - ANSWER>>The acquisition or merger of two or more
organizations that produce similar products or services
Internal environmental analysis - ANSWER>>Evaluation of an organization's
products, assets, operations, and other factors to determine whether the
organization is carrying out its mission effectively and efficiently
, Page 4 of 48
Malfeasance - ANSWER>>Wrongdoing or improper and dishonest conduct,
especially by a person who holds public office or a position of trust
Market share - ANSWER>>The percentage of total sales volume in a market
captured by a brand, product, service, or company
Market structure - ANSWER>>The organizational characteristics of a market
that exert a strategic influence on the intensity and form of competition
Marketing - ANSWER>>The deliberate effort to establish fruitful relationships
with exchange partners and stakeholders
Portfolio analysis - ANSWER>>A method of assessing an organization's
products or strategic business units that considers various factors, including
competitive position, profitability, growth, and mission importance
Product (or service) life cycle - ANSWER>>Four distinct but not wholly
predictable stages every product or services goes through: introduction to
the market; growth in utilization and revenue; maturity, when utilization and
revenue stabilize; and decline, when utilization and revenue start to fall and
eventually become too little for the product or service to remain viable
Project charter - ANSWER>>A tool commonly used in project management to
clarify the key components of a project (e.g., scope, desired outcomes,
participants, resources, time frames, responsible parties) and to ensure that
the product's definition and desired outcomes coincide with an
organization's strategic priorities and goals
Scenario analysis - ANSWER>>A technique of proposing alternative futures
that could come to pass if a specified environmental change occurs; used by
leaders to better understand and plan for future contingencies
Segmentation - ANSWER>>The division of a market into subsets of
consumers with similar needs and wants; enables marketers to focus their
marketing efforts on consumers mostly likely to buy a project or use a service
