ACHE FACHE BOG Governance and Org Structure with verified correct answers

a. Monitoring budget performance 1) The finance committee of the Board is responsible for: a. Monitoring budget performance b. Awarding CEO increases and bonuses c. Acting on behalf of the Board in their absence d. Permitting joint ventures with other corporations b. Services 2) Which of the following should be included in an organization's mission statement? a. Ethics b. Services c. Strategies d. Facilities c. A board member refrains from conflicts of interest 3) The duty of loyalty requires that: a. A board member discloses all of their assets before becoming a board member b. A board member belongs to as few healthcare organizations as possible c. A board member refrains from conflicts of interest d. A board member serves out his/her entire term d. The entire board 4) The CEO of a hospital reports to the: a. Board chair b. The executive committee of the board c. The compensation and evaluation committee of the board d. The entire board d. The executive committee will make all of the important decisions 5) The danger of having a large board (> 17) is: a. The board can never have a quorum b. The board will not be able to elect a chair person c. There will be too many committees d. The executive committee will make all of the important decisions c. The CEO 6) Regarding the hiring of employees, the Board should be intimately involved in which of the following positions: a. All management personnel b. All employees within the organization c. The CEO d. All clinical personnel c. Nominating Committee 7) The most critical committee that requires tenured board members is: a. Audit Committee b. Finance Committee c. Nominating Committee d. Executive Committee d. Duty of loyalty 8) A member of the board of a healthcare organization also serves as the medical director of a competing organization. Which one of these duties of a board is applicable to the situation? a. Duty of care b. Duty of obedience c. Business judgment rule d. Duty of loyalty