CEO Compensation should be based on:

1

Quiz____?

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 - Answer✓✓

• what the institution would have to pay for a similarly prepared person if that person were

employed elsewhere

Quiz____?

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 -

Answer✓✓

• approve the mission, vision, and long-range plan

Quiz____?The key to enhancing board effectiveness is: 1 / 4

2

• getting the right people to serve on the board
• supporting and selecting the right CEO
• orientating and training the CEO
• organizing the board's work -

Answer✓✓

• organizing the board's work

Quiz____?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 -

Answer✓✓

• when not legally prohibited

Quiz____?

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 -

Answer✓✓

• represents the board internally and externally

• / 4

3 Quiz____?

Regarding the budget, the board:

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

Answer✓✓

• establishes guidelines and makes final choices among competing opportunities

Quiz____?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 -

Answer✓✓

• Governing Body

Quiz____?

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

• waive their fiduciary responsibility as a community organization - 3 / 4

4 Answer✓✓

• be indicted for alleged theft of facility funds and improper expenditures of facility funds for

personal reasons.

Quiz____?

Ultimate responsibility for the mission statement rests with the:

• CEO and medical staff
• Governing Board
• Community and CEO
• CEO -

Answer✓✓

• Governing Board

Quiz____?

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 -

Answer✓✓

• of what they can do for the organization

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

• Committee scope and function
• The privileges of the medical staff
• / 4