ACHE BOG EXAM SAMPLE TEST

• | Page

ACHE BOG EXAM SAMPLE TEST

UPDATED ACTUAL EXAM WITH

CORRECT SOLUTIONS.

CEO Compensation should be based on:

• the compensation arrangement with prior CEO
• executive compensation in local corporations with similar

gross revenues

• present day salary plus cost-of living adjustment
• what the institution would have to pay for a similarly prepared

person if that person were employed elsewhere - correct 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:

• approve the mission, vision, and long-range plan
• focus on strategic planning
• prepare the operating plan
• review the performance of departmental managers - correct

answer- a. approve the mission, vision, and long-range plan

The key to enhancing board effectiveness is:

• getting the right people to serve on the board 1 / 4

• | Page

• supporting and selecting the right CEO
• orientating and training the CEO
• organizing the board's work - correct 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:

• when not legally prohibited
• when they do not actively practice in the organization
• when they are not full-time employees
• if they are not foreign nationals - correct answer- a. when not

legally prohibited

The Chief Executive Officer:

• is a member of the board
• represents the board internally and externally
• is not a member of the board
• has a contract with the board - correct answer- b. represents

the board internally and externally

Regarding the budget, the board:

• does not use the budget exercise as a way to improve quality

and productivity 2 / 4

• | Page

• gets involved in preparing budgets for all operational units
• decides which personnel are needed in top management
• establishes guidelines and makes final choices among

competing opportunities - correct 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:

• COO
• Medical Staff Medical Committee
• Governing Body
• CEO - correct answer- c. Governing Body

A correct statement regarding trustee serving as fiduciaries is

that they can:

• be indicted for alleged theft of facility funds and improper

expenditures of facility funds for personal reasons.

• be released from responsibility by giving the audit committee

final authority in high risk areas of financial matters, without any action by the whole board

• be held personally liable for wrongful acts or omissions by

corporate officers or co-trustees by virtue of their position as trustees 3 / 4

• | Page

• waive their fiduciary responsibility as a community

organization - correct answer- a. be indicted for alleged theft of facility funds and improper expenditures of facility funds for personal reasons.

Ultimate responsibility for the mission statement rests with the:

• CEO and medical staff
• Governing Board
• Community and CEO
• CEO - correct answer- b. Governing Board

A key reason for choosing board members is because:

• other board members want to listen to their opinions.
• of what they can do for the organization
• have high status in the community
• physicians will listen to them they can - correct answer- b. of

what they can do for the organization

The bylaws of healthcare organization should include which of the following?

• Committee scope and function
• The privileges of the medical staff
• The names of the stockholders in the organization
• / 4