NAB EXAM TESTBANK Questions and
Answers | 2026 Complete Study Guide |
Grade A+
• The scope of authority in the operation of the nursing facility is greatest at which
level -✓✓Ownership
• Ultimate authority in a private corporate nursing facility is with the -✓✓Board of
directors
• Managerial authority is power -✓✓to command, issue orders or exact action by
subordinates
• Decentralized authority is characterized by -✓✓process of delegating authority
• Centralized authority is -✓✓vesting decision making in top managment
• Authority vested in a supervisory nurse is -✓✓middle management authority
• Decision making authority is when a supervisor -✓✓hires, fires and makes
judgmental decisions
• Concepts of modern management recommend that an effective administrator will
delegate -✓✓operational authority
• Unity of command refers to -✓✓reporting to one supervisor
,• Which of the following forms of business is considered the oldest form of
business -✓✓sole proprietorship
• The term proprietorship as it relates to the nursing facility industry means -
✓✓privately owned
• The majority of nursing facility beds in the united states are owned by -
✓✓corporations
• Which of the following forms of ownership must have articles drawn up and
reduced to writing? -✓✓corporation
• Under which form of ownership would the administrator have the greatest
latitude of authority and decision making? -✓✓Sole proprietorship
• All but one are considered advantages of sole proprietorship -✓✓Unlimited
liability
• All but one are considered disadvantages of a partnership -✓✓Retention of
valuable employees
• A corporation is -✓✓a legal entity created by law to carry on a business or
profession
• Which one of the following forms of business ownership is considered the most
important? -✓✓Corporation
,• A nonprofit corporation is one which -✓✓makes a profit but returns it to the
operation of business
• Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing
to participate in medicare must have -✓✓a governing body
• The role of the governing body pursuant to the Code of Federal Regulation 42
CFR Part 483 is to -✓✓establish and implement policies regarding management
and operation of the facility
• The Code of Federal Regulations 42 CFR part 483 requires that the facility
disclose -✓✓officers, directors, agents, or management employees
• The role of the administrator in a modern nursing facility is to -✓✓advise the
governing body and carry out their decisions
• According to the Code of Federal Regulations 42 CFR Part 483 the administrator
appointed by the governing body must be -✓✓licensed by the state and
responsible for the management of the facility
• An objective may be defined as -✓✓organizing
• The first step in planning is -✓✓setting the objectives of the organization
• Effective management is best carried out by following which method? -
✓✓management by objectives
, • Management by objectives involves -✓✓plurality of objectives
• Which of the following objectives would be considered first in establishing a new
nursing facility? -✓✓Type of facility
• An administrator of a proprietary nursing facility should be primarily concerned
with which one of the following objectives? -✓✓Quality of care
• Which one of the functions of management would be accomplished first? -
✓✓planning
• Relative to setting objectives, which task listed below would be of primary
importance for the administrator to accomplish? -✓✓constantly review and
reassess objectives of the nursing facility
• Which one of the following statements is true? -✓✓Every department in the
nursing facility should have goals or objectives
• Since there is a plurality of objectives in a nursing facility, the facility should
concern itself with -✓✓long and short term goals
• Planning is primarily concerned with -✓✓use of facts to determine course of
action for the future
• Strategic planning -✓✓helps the facility to re evaluate its mission and identify its
long term goals.
Answers | 2026 Complete Study Guide |
Grade A+
• The scope of authority in the operation of the nursing facility is greatest at which
level -✓✓Ownership
• Ultimate authority in a private corporate nursing facility is with the -✓✓Board of
directors
• Managerial authority is power -✓✓to command, issue orders or exact action by
subordinates
• Decentralized authority is characterized by -✓✓process of delegating authority
• Centralized authority is -✓✓vesting decision making in top managment
• Authority vested in a supervisory nurse is -✓✓middle management authority
• Decision making authority is when a supervisor -✓✓hires, fires and makes
judgmental decisions
• Concepts of modern management recommend that an effective administrator will
delegate -✓✓operational authority
• Unity of command refers to -✓✓reporting to one supervisor
,• Which of the following forms of business is considered the oldest form of
business -✓✓sole proprietorship
• The term proprietorship as it relates to the nursing facility industry means -
✓✓privately owned
• The majority of nursing facility beds in the united states are owned by -
✓✓corporations
• Which of the following forms of ownership must have articles drawn up and
reduced to writing? -✓✓corporation
• Under which form of ownership would the administrator have the greatest
latitude of authority and decision making? -✓✓Sole proprietorship
• All but one are considered advantages of sole proprietorship -✓✓Unlimited
liability
• All but one are considered disadvantages of a partnership -✓✓Retention of
valuable employees
• A corporation is -✓✓a legal entity created by law to carry on a business or
profession
• Which one of the following forms of business ownership is considered the most
important? -✓✓Corporation
,• A nonprofit corporation is one which -✓✓makes a profit but returns it to the
operation of business
• Pursuant to the Code of Federal Regulations, 42 CFR part 483, a facility wishing
to participate in medicare must have -✓✓a governing body
• The role of the governing body pursuant to the Code of Federal Regulation 42
CFR Part 483 is to -✓✓establish and implement policies regarding management
and operation of the facility
• The Code of Federal Regulations 42 CFR part 483 requires that the facility
disclose -✓✓officers, directors, agents, or management employees
• The role of the administrator in a modern nursing facility is to -✓✓advise the
governing body and carry out their decisions
• According to the Code of Federal Regulations 42 CFR Part 483 the administrator
appointed by the governing body must be -✓✓licensed by the state and
responsible for the management of the facility
• An objective may be defined as -✓✓organizing
• The first step in planning is -✓✓setting the objectives of the organization
• Effective management is best carried out by following which method? -
✓✓management by objectives
, • Management by objectives involves -✓✓plurality of objectives
• Which of the following objectives would be considered first in establishing a new
nursing facility? -✓✓Type of facility
• An administrator of a proprietary nursing facility should be primarily concerned
with which one of the following objectives? -✓✓Quality of care
• Which one of the functions of management would be accomplished first? -
✓✓planning
• Relative to setting objectives, which task listed below would be of primary
importance for the administrator to accomplish? -✓✓constantly review and
reassess objectives of the nursing facility
• Which one of the following statements is true? -✓✓Every department in the
nursing facility should have goals or objectives
• Since there is a plurality of objectives in a nursing facility, the facility should
concern itself with -✓✓long and short term goals
• Planning is primarily concerned with -✓✓use of facts to determine course of
action for the future
• Strategic planning -✓✓helps the facility to re evaluate its mission and identify its
long term goals.
