ACHE BOG 2024 EXAM |PRACTICE EXAM 100 QUESTIONS TEST BANK AND STUDY GUIDE WITH VERIFIED, Exams of Nursing

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ACHE BOG 2024 EXAM |PRACTICE EXAM 100 QUESTIONS TEST BANK AND STUDY GUIDE WITH VERIFIED ANSWERS 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 - 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 - 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 - 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 - 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 - 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 - 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 - ANSWER>>c. Governing Body c. sales and revenue growth is slow c. all of the above - ANSWER>>c. all of the above The primary task of marketing is to: a. bring about voluntary and involuntary exchanges of value b. attract new advertiser c. bring about exchanges of values d. advertise new and existing services - ANSWER>>c. bring about exchanges of values It would be incorrect to say that: a. an organization's image is a function of all that the organization has done as well as what it has attempted to communicate b. people's images of an organization always reflects their true attitudes toward the organization c. an organization's image is largely the result of public relations, advertising, selling, and communication efforts. d. responsibility for the creation of the organization's image does not lie merely with the marketer - ANSWER>>c. an organization's image is largely the result of public relations, advertising, selling, and communication efforts. It is important to understand the consumer adoption process because: a. the organization may be able to convince the consumer to pass over awareness, interest, the evaluation stages, moving directly to trail. b. it is important to have the communications plan for new products/services address the late majority and laggards as well as the innovators c. word of mouth and personal influence play little to no role in the consumer adoption process d. people differ significantly in their likelihood to try a new product/service, a factor that should affect an organization's communications plans for its new product /service - ANSWER>>d. people differ significantly in their likelihood to try a new product/service, a factor that should affect an organization's communications plans for its new product /service All of the following can be used to establish marketing budgets? a. The affordable method b. Objective and task method c. Competitive-based method 4. All the above - ANSWER>>b. Objective and task method All of the following are methods used to forecast future demands except: a. target buyer intention surveys b. performance of an environmental assessment c.estimation of a competitor's current customer base d. estimate of future demand by "middlemen" - ANSWER>>c. estimation of a competitor's current customer base All of the following statements are true except that: a. much of the art of forecasting relies on the opinions of experts b. forecasting, if correctly performed relying on technological forecasting approaches, is an exact science c. forecasting includes applying the rates of anticipated future change to the current status to predict the future d. qualitative date are often used in developing assumptions on which quantitative forecasting can be constructed - ANSWER>>b. forecasting, if correctly performed relying on technological forecasting approaches, is an exact science Which of the following environmental assumptions for the next decade is not reasonable? a. Cost containment pressures will continue to be a dominate factor in the delivery of health services b. There will be decreased morbidity (substance abuse, violence, accidents, etc.) c. Continued growth in new technologies will focus on cost -saving technologies that move care from inpatient settings to out -of-hospital settings. d. There will be continuing efforts to measure and assure quality of healthcare services. - ANSWER>>b. There will be decreased morbidity (substance abuse, violence, accidents, etc.) Of the following advertising media, which of the potentially has the maximum selectivity in reaching defined target audience? a. Local radio b. Direct mail c. Network TV 4. Outdoor advertising - ANSWER>>b. Direct mail The major value of job analysis is that it is: a. used to establish wage levels b. The best method for identifying the need for employees c. the cornerstone of human resources management activities valid for a long period of time. - ANSWER>>c. the cornerstone of human resources management activities c. "risky shift" when individuals ignore potentially dangerous outcomes and choose high-risk alternatives d. "behavioral transference" when values and norms of other work groups are discounted - ANSWER>>b. "free-riding" when individuals can benefit from the work of the group without making a suitable contribution The major benefit of integrative dimension of negotiation over the distributive dimension is that the: a. value of the Best Alternative to a Negotiated Agreement is increased b. value of the Best alternative to a Negotiated Agreement is decreased c. complexity of the negotiation process is simplified d. amount of resources to be distributed is increased, allowing both parties to reach their reservation prices - ANSWER>>d. amount of resources to be distributed is increased, allowing both parties to reach their reservation prices As managerial vacancies occur, the availability of well-trained individuals who understand the organization's mission, vales, culture and strategy is enhanced by: a. the use of an executive search firm to fill managerial vacancies b. rotation of managerial responsibilities among the organization c. the use of an effective succession planning program d. uniform management development programs for midlevel and senior-level managers - ANSWER>>c. the use of an effective succession planning program Capital rationing in the investment decision process refers to the: a. decision on which of the proposed capital projects will be funded b. decision on the total amount of funds available for capital projects c. decision on the financial merits of each proposal d. decision on the amount of funds to be borrowed for capital projects - ANSWER>>a. decision on which of the proposed capital projects will be funded A positive net present value indicates that the investment has a rate of return: a. decision on which of the proposed capital projects will be funded b. lower than the discount rate used in the calculation c. equal to the discounted rate used in the calculation d. equal to the accounting profit averaged over the life of the investment. - ANSWER>>a. decision on which of the proposed capital projects will be funded For information on net cash flow from providing health services for a specific time frame, the decision maker should use the: a. statement of cash flow b. income statement c. balance sheet d. statement of retained earnings - ANSWER>>a. statement of cash flow Memorial Hospital offers a screening test as a public service for $.50 per test. Variable cost per unit are $.32. Fixed cost are $43,200 per month for the department performing the test. It is the only test done by this special department. the break-even point in the test is: a. 240,000 tests b. 172,800 tests c. 135, 000 tests d. 86,400 tests - ANSWER>>a. 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000) The most important factor in the success of the organizational internal control system is: a. selection of the internal auditor b. selection of the CEO c. selection of certified public accountants for internal auditor functions d. selection of the audit committee of the board - ANSWER>>a. selection of the internal auditor Hampton Outpatient budgeted revenue from flu vaccinations at $20 per shot. Fixed cost total $5 per unit dose on 4,000 shots and remain unchanged within a relevant range of 1,500 shots to 6,400 shots. Variable cost of $10 per shot. After total revenue was budgets at $70,000, the clinic received a request from the local school district for flu vaccinations for its 1,000 students at a reasonable cost. If Hampton Clinic wants to increase operating income by $2,000, what should Hampton charge for additional shots. a. The variable cost plus the incremental profit margin per shot. b. The average cost per sot plus the per-unit profit c. The fixed cost per shot plus the variable cost. d. The variable costs plus the per-unit fixed cost. - ANSWER>>a. The variable cost plus the incremental profit margin per shot. Financial risk is an element in capital investment decisions and is determined by: a. the riskiness of the firm to the equity holders, assuming no debt financing is used. b. The additional risk placed on the firm when debt financing is used c. the risk inherent in the firm's beta coefficient as determined by industry levels. d. forecast total admissions activity levels and patient days - ANSWER>>d. forecast total admissions activity levels and patient days Under generally accepted accounting standards, bad debt are reported as a/an: a. deduction from revenue b. operating expense c. contractual allowance d. deduction from gross revenue - ANSWER>>b. operating expense A technique used to shorten the in-house processing time of the accounts receivable cycle is a: a. "lock-box" agreement b. line of credit arrangement c. minimum balance agreement d. shorten write-off date - ANSWER>>a. "lock-box" agreement Which of the following best describes a plan for the development of a facility' physical plant? a. a set of completed plans and specifications for all of the changes to be made to the physical plant b. a projection of the cash flow for the plant -related projects c. a listing of the changes, sequence, and cost to meet projected capacity requirements a financial feasibility study of funding alternatives for plant development - ANSWER>>c. a listing of the changes, sequence, and cost to meet projected capacity requirements In planning to purchase new equipment, a healthcare facility should always be sure: a. to speak with all suppliers and ask for presentations by suppliers b. that the purchase is part of the facility's capital plan c. to take the lowest bid d. to take the recommendation of the medical director - ANSWER>>b. that the purchase is part of the facility's capital plan The selection of major item of equipment should be: a. guided by a selection group composed of the users and maintainers of that equipment b. made by the medical director of the department c. the sole choice of the administrator d. the decision of the board of directors - ANSWER>>a. guided by a selection group composed of the users and maintainers of that equipment An effective plan for equipment maintenance is: a. ensured by having all replacement parts in stock b. determine when the equipment is installed and need not be changed c. based on manufacture's recommendation and facility experience with the equipment d. ensured by having a computer based preventive maintenance system - ANSWER>>c. based on manufacture's recommendation and facility experience with the equipment To access the effectiveness of its maintenance program, a health facility should: a. review the cost of the maintenance activities b. send satisfaction questionnaires to user department c. monitor an established set of performance measures on a periodic basis d. have an outside consultant review the program - ANSWER>>c. monitor an established set of performance measures on a periodic basis The organization's strategic plan, accreditation and licensing requirements , and the need to improve functional efficiency may indicated the need for a building program. To develop a program that best meets these needs, the healthcare organization should: a. interview the medical staff for suggestions b. interview the department managers regarding planned growth c. interview board members d. prepare a master facility plan - ANSWER>>d. prepare a master facility plan The master facility plan for development of a healthcare organization's physical plant should be based on: a. the suggestions of the medical staff for clinical services expansion b. the facility's strategic plan and volume projections c. recommendations from licensing and accrediting bodies d. the architect's drawings - ANSWER>>b. the facility's strategic plan and volume projections A facility maintenance program will be most effective if: a. request for service are satisfied promptly. b. reliability, safety and efficient operation guide the plan's design c. system failures occur rarely d. backup plans exist for major system - ANSWER>>b. reliability, safety and efficient operation guide the plan's design d. the CIO and outside technical consultants - ANSWER>>b. representatives of administration, physicians leadership, information systems management, and major user departments The most important factor influencing specifications for individual information systems in healthcare organizations should be: a. standard reports generated b. user requirements c. the cost of the systems d. vendor service capabilities - ANSWER>>b. user requirements Of the following, the most important task in evaluating vendor information system products is: a. reviewing technical journals b. attending vendor product demonstrations c. talking directly with others who have used the products you are considering d. attending computer trade shows - ANSWER>>c. talking directly with others who have used the products you are considering As healthcare networks development, the level of information systems consolidation should be driven by: a. the desire and needs of managed care and other payors b. the business, clinical and operating requirements of the emerging organization c. the desires of the largest organizations in the network d. plans to use common computer hardware throughout the network - ANSWER>>b. the business, clinical and operating requirements of the emerging organization Information systems needed for financial planning and control in healthcare organization include: a. patient registration, admissions, discharges, and transfers b. outpatient and emergency room scheduling c. budgeting, cost accounting, case-mix analysis, and financial modeling d. order entry and result reporting - ANSWER>>c. budgeting, cost accounting, case-mix analysis, and financial modeling Outcomes assessments required by managed care will require more advanced clinical information systems, such as: a. computerized protocols to aid in diagnosis and treatment planning b. computerized patient registration c. entry laboratory and radiology orders from computer terminals d. processing of medical records abstracts - ANSWER>>a. computerized protocols to aid in diagnosis and treatment planning With respect to the processes by which healthcare organizations maintain the confidentiality, security, and integrity of the medical record, all of the following statements are true EXCEPT: a. the original medical record of a patient being transferred from one healthcare organization to another may accompany the patient to new organization b. healthcare organization must have a mechanism to preserve the confidentiality of data/information identified as sensitive c. the organization must have a mechanism to safeguard records against loss, destruction, tampering, and unauthorized access or use. d. written policies must require that medical record may be removed from the organization's jurisdiction only in accordance with a court order, subpoena, or statue - ANSWER>>a. the original medical record of a patient being transferred from one healthcare organization to another may accompany the patient to new organization All of the following are commonly recognized to be right of each patient EXCEPT the right to: a. received considerate and respectful care b. access protective services c. communicate with caregiver in the language the patient's choosing d. be informed about participant in decision regarding their care - ANSWER>>c. communicate with caregiver in the language the patient's choosing All of the following statements about documentation in the medical record are true EXCEPT: a. verbal orders must be authorized by the practitioner within a time frame to be defined by the medical staff b. verbal orders can only be accepted by registered nurses c. authentication may be made by actual written signatures, initials, rubber stamp signatures, or computer "signatures" d. that entries must be authenticated by the actual author only - ANSWER>>b. verbal orders can only be accepted by registered nurses Current JCAHO guidelines regarding the design of new patient care processes include all of the following EXCEPT: a. the design is clinically up-to-date b. the design is based on the organization's mission, vision, values, and plans c. the design meets the needs and expectation of key constituents A non-legitimate reason to release information from a patient's medical record is when: a. subpoenaed by a court order b. requested by the spouse or next of kin c. the patient becomes incompetent d. reporting statistics for a research project - ANSWER>>b. requested by the spouse or next of kin In the past, hospitals have been less effective in lobbying than physicians because: a. legislators like physicians more b. physician have better lobbyists c. the law prevents hospitals from lobbying d. hospitals do not have a vote - ANSWER>>d. hospitals do not have a vote In general, courts exhibit what attitude regarding controversies over medical staff privileges? a. Human lives are at stake and the courts must intervene to protect physicians' rights to save those lives b. If the decision were supported by reasonable evidence, courts will not substitute their judgment for that of the hospital board c. Hospitals must not be permitted to interfere with the doctor-patient relationship d. Courts may not entertain suits regarding medical staff privileges - ANSWER>>b. If the decision were supported by reasonable evidence, courts will not substitute their judgment for that of the hospital board Under federal law, whenever a patient comes to a hospital emergency department with an emergency condition: a. with few expectations, the patient's liability to pay may be considered in determining whether to provide treatment b. with few expectations, the patient's condition must stabilize before he or she is transferred or discharged c. a police may be asked to authorize treatment d. the hospital has no duty to treat the person if he/she is not a patient or a member of the medical staff - ANSWER>>b. with few expectations, the patient's condition must stabilize before he or she is transferred or discharged In considering applications for medical staff privileges, hospitals receive reports from the US Government clearing house on malpractice payments and adverse medical staff licensure actions. In general, these reports have had which effect? a. Reports have rarely led hospitals to make privileging decisions they would not have made otherwise b. Reports have bee timely and helpful and have reduced the complexity of the privileging process c. had they not received the reports, most hospitals' privileging decisions would usually would have been different. d. Hospitals usually receive significant information that neither the practitioner involved nor any other sources had provided - ANSWER>>a. Reports have rarely led hospitals to make privileging decisions they would not have made otherwise Which of the following statements BEST summarizes the prevailing legal standards used to judge the actions of members of a not-for -profit healthcare organization's governing board? a. They must act in good faith, with reasonable care, and with the best interests of the corporation in mind. b. They must have exercise the same high level of fiduciary duty as is applied to the trustees of a trust c. They must avoid gross negligence and willful misconduct d. They are immune from personal liability - ANSWER>>a. They must act in good faith, with reasonable care, and with the best interests of the corporation in mind. Which of the following is the clear trend regarding a hospital's liability for the action s of members of its medical staff? a. The hospital may be held liable for a physician's negligence even though the physician is an "independent contractor" b. Hospitals are not liable for such actions because they are simply physical sites where patients receive treatment from privately retained physicians c. Courts are becoming more reluctant to impose liability on hospitals for negligence of physicians who use their facilities d. The hospital is liable only if the physician is an employee - ANSWER>>a. The hospital may be held liable for a physician's negligence even though the physician is an "independent contractor" A joint venture laboratory owned by a hospital and physicians on its medical staff would probably be a violation of fraud and abuse law if it were to: a. market its services to both investors and non-investors b. offer ownership shares at the same price toe referrers and non-referrers c. required investors to refer business to it d. base its profit distribution on the amount of capital contribution, not on referrals - ANSWER>>c. required investors to refer business to it When an acute healthcare facility is part of a parent-subsidiary type corporation, that facility typically is: a. the parent corporation b. a holding company c. a member of the association d. the subsidiary - ANSWER>>d. the subsidiary Two independent healthcare organizations interested in discussing a joint venture to initiate a cancer treatment program would be wide to initially consult with their legal counsel to determine if their: a. liability is equal even though disproportionately owned b. financial gains or losses can be shared unequally c. discussions might violate antitrust statues. d. current facilities can accommodate the program - ANSWER>>c. discussions might violate antitrust statues. The healthcare executive with opposing duties (obligations) meeting one of which makes it impossible to meet other has a : a. conflict of interest b. management ethical dilemma c. need for a consultant d. situation that is impossible - ANSWER>>a. conflict of interest The best way to describe health fairs, screening programs, and smoking cessation classes provided by healthcare organizations is that they are: a. attempt to create demand b. necessary for most third party reimbursement c. desirable, but superfluous activities d. community education programs - ANSWER>>d. community education programs The ethical precepts (organizational philosophy) that guide an organization's activities are found in a variety of sources that are: a. reflected in everyone's actions b. the sole province of senior management. c. part of the governing body's formal actions d. written and unwritten - ANSWER>>d. written and unwritten The most common and useful ways to overcome resistance to change in organizations are: a. education and communication b. manipulation and co-optation c. committees and task forces d. inspirational leadership and managerial skill - ANSWER>>a. education and communication Coordination among governance, management, and professional staff is a major problem for most healthcare organizations. A common way to solve the problem of coordination is to: a. provide a local area network to leaders of each group using personal computers b. have overlapping membership on committee that are part of each group c. have quarterly meeting where issues of concern to the groups are discussed d. provide copies of memoranda and policy statements to leaders of each group - ANSWER>>b. have overlapping membership on committee that are part of each group In effort to encourage licensed clinical staff to engage in continuing education, healthcare executives are given substantial assistance by the fact that these professionals: a. are encouraged by significant peer pressure b. must meet requirements of their certifying group c. are often interested in opportunities to transfer d. must meet malpractice law continuing education standards - ANSWER>>b. must meet requirements of their certifying group