NAB CORE Practice Exam Questions and
Correct Answers 100% Verified
Question 1
An organization is considering the purchase of a piece of equipment that costs $6,000
and has a useful life of 10 years (with no salvage value). It is estimated that the item
will reduce annual operating costs by $800 over each of the next ten years. What
would be the payback period?
A. 7.50 years
B. 1.33 years
C. 0.75 years
D. Cannot be determined with the provided information
Correct Answer
A. 7.50 years
Question 2
Available for care recipients diagnosed with a serious illness where they are seeking
treatment but have unmanageable symptoms.
A. Hospice
B. Palliative Care
C. Both
Correct Answer
B. Palliative Care
Page 1 of 194
,Question 3
P1.28 The staff person for whom both upward and downward communication skills
are the MOST necessary is the _______.
A. Staff development coordinator
B. Director of nursing
C. Nursing supervisor
D. Assistant administrator for personnel
Correct Answer
B. Director of nursing
The director of nursing must be skilled in upward and downward communications,
as they are responsible for reporting to upper-level management and for interacting
with lower-level management.
Question 4
Plans for expenditures for buildings, major equipment, and the like are normally part
of the _____ budget.
A.Cash
B.Revenue
C.Expense
D.Capital
Correct Answer
D. Capital.
The capital budget summarizes all anticipated capital (items with a life of more than
12 months) expenditures in the budget year.
Page 2 of 194
,Question 5
In the typical facility of 100 residents, there is(are) _____ full-time personnel director(s).
A.One
B.Two
C.No
D.A professionally trained
Correct Answer
C. No.
In a facility of perhaps 100 to 150 residents, no full-time human resources director is
usually hired. However, some of the typical "human resources department"
functions are usually given to one employee who, in effect, serves as a part-time
personnel staff in the facility. This person sometimes receives the title of staff
development coordinator or something similar. Alternatively, personnel
recordkeeping tasks may be disseminated to multiple staff members such as an
assistant administrator, an administrative assistant, a staff nurse, or an employee in
the business office.
Question 6
Which of these is not a legal question that employers may ask of job applicants?
A. Are you able to perform the essential functions of this job with or without a
reasonable accommodation?
B. Would you demonstrate how you would perform a job function?
C. Are you able to meet the attendance requirements of this job?
D. Do you have a disability that would interfere with your ability to perform
Correct Answer
Do you have a disability that would interfere with your ability to perform
Page 3 of 194
, Question 7
In collective bargaining, when labor and management select a third party to decide an
issue, and agree to accept that third party's decision as final andbinding on both
sides, the process is called:
A. mediation
B. Arbitration
C. conciliation
D. subrogation
Correct Answer
B. Arbitration
Question 8
P1.19 New legislation such as the _____ has allowed nursing facilities the ability to
leverage new technologies and electronic health records to provide improved care.
A. Hatch Act
B. Affordable Care Act
C. Health Information Technology for Economic and Clinical Health (HITECH) Act
D. American Recovery and Reinvestment Act
Correct Answer
C. Health Information Technology for Economic and Clinical Health (HITECH) Act
The HITECT Act has opened new avenues for technology to be used in the facility to
improve resident care.
Question 9
Deming would _____ setting the number of beds to be made each day or the number
of rooms to be cleaned or floors scrubbed.
A.Approve of
B.Disapprove of
C.Insist on
D.See as quite functional the
Correct Answer
B. Disapprove of.
Deming believed in the elimination of numerical quotas from production. He
instead believed in learning and instituting methods for improvement.
Page 4 of 194
Correct Answers 100% Verified
Question 1
An organization is considering the purchase of a piece of equipment that costs $6,000
and has a useful life of 10 years (with no salvage value). It is estimated that the item
will reduce annual operating costs by $800 over each of the next ten years. What
would be the payback period?
A. 7.50 years
B. 1.33 years
C. 0.75 years
D. Cannot be determined with the provided information
Correct Answer
A. 7.50 years
Question 2
Available for care recipients diagnosed with a serious illness where they are seeking
treatment but have unmanageable symptoms.
A. Hospice
B. Palliative Care
C. Both
Correct Answer
B. Palliative Care
Page 1 of 194
,Question 3
P1.28 The staff person for whom both upward and downward communication skills
are the MOST necessary is the _______.
A. Staff development coordinator
B. Director of nursing
C. Nursing supervisor
D. Assistant administrator for personnel
Correct Answer
B. Director of nursing
The director of nursing must be skilled in upward and downward communications,
as they are responsible for reporting to upper-level management and for interacting
with lower-level management.
Question 4
Plans for expenditures for buildings, major equipment, and the like are normally part
of the _____ budget.
A.Cash
B.Revenue
C.Expense
D.Capital
Correct Answer
D. Capital.
The capital budget summarizes all anticipated capital (items with a life of more than
12 months) expenditures in the budget year.
Page 2 of 194
,Question 5
In the typical facility of 100 residents, there is(are) _____ full-time personnel director(s).
A.One
B.Two
C.No
D.A professionally trained
Correct Answer
C. No.
In a facility of perhaps 100 to 150 residents, no full-time human resources director is
usually hired. However, some of the typical "human resources department"
functions are usually given to one employee who, in effect, serves as a part-time
personnel staff in the facility. This person sometimes receives the title of staff
development coordinator or something similar. Alternatively, personnel
recordkeeping tasks may be disseminated to multiple staff members such as an
assistant administrator, an administrative assistant, a staff nurse, or an employee in
the business office.
Question 6
Which of these is not a legal question that employers may ask of job applicants?
A. Are you able to perform the essential functions of this job with or without a
reasonable accommodation?
B. Would you demonstrate how you would perform a job function?
C. Are you able to meet the attendance requirements of this job?
D. Do you have a disability that would interfere with your ability to perform
Correct Answer
Do you have a disability that would interfere with your ability to perform
Page 3 of 194
, Question 7
In collective bargaining, when labor and management select a third party to decide an
issue, and agree to accept that third party's decision as final andbinding on both
sides, the process is called:
A. mediation
B. Arbitration
C. conciliation
D. subrogation
Correct Answer
B. Arbitration
Question 8
P1.19 New legislation such as the _____ has allowed nursing facilities the ability to
leverage new technologies and electronic health records to provide improved care.
A. Hatch Act
B. Affordable Care Act
C. Health Information Technology for Economic and Clinical Health (HITECH) Act
D. American Recovery and Reinvestment Act
Correct Answer
C. Health Information Technology for Economic and Clinical Health (HITECH) Act
The HITECT Act has opened new avenues for technology to be used in the facility to
improve resident care.
Question 9
Deming would _____ setting the number of beds to be made each day or the number
of rooms to be cleaned or floors scrubbed.
A.Approve of
B.Disapprove of
C.Insist on
D.See as quite functional the
Correct Answer
B. Disapprove of.
Deming believed in the elimination of numerical quotas from production. He
instead believed in learning and instituting methods for improvement.
Page 4 of 194
