FACHE - FELLOW OF THE AMERICAN COLLEGE OF HEALTHCARE EXECUTIVES |
BOARD OF GOVERNORS EXAM | 100% VERIFIED REAL QUESTIONS AND ANSWERS |
LATEST 2026/2027 VERSION (PASS GUARANTEE)
1. The primary responsibility of a hospital board of trustees is to:
A. Manage day-to-day clinical operations
B. Hire and evaluate the CEO and ensure organizational accountability
C. Approve all patient care protocols
D. Negotiate physician contracts
ANSWER : B. Hire and evaluate the CEO and ensure organizational
accountability
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Domain: Governance & Organizational Structure
2. Which governance model is most commonly used in not-for-profit hospitals?
A. Unitary board
B. Corporate board
C. Advisory board
D. Self-perpetuating board
ANSWER : D. Self-perpetuating board
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Domain: Governance & Organizational Structure
3. The Sarbanes-Oxley Act primarily affects healthcare organizations by:
A. Mandating clinical quality standards
B. Requiring financial transparency and accountability in publicly traded
companies
C. Regulating physician credentialing
D. Setting nurse-to-patient staffing ratios
FACHE Exam Preparation | 200 Practice Questions
,ANSWER : B. Requiring financial transparency and accountability in
publicly traded companies
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Domain: Governance & Organizational Structure
4. In a matrix organizational structure, employees report to:
A. Only their direct supervisor
B. Both a functional manager and a project/product manager
C. The CEO directly
D. An external regulatory body
ANSWER : B. Both a functional manager and a project/product manager
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Domain: Governance & Organizational Structure
5. Which type of organizational structure is most appropriate for a large,
diversified health system?
A. Functional structure
B. Divisional structure
C. Simple flat structure
D. Virtual organization
ANSWER : B. Divisional structure
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Domain: Governance & Organizational Structure
6. A hospital CEO is directly accountable to:
A. The medical staff
B. The board of trustees
C. The department heads
D. The state health department
ANSWER : B. The board of trustees
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FACHE Exam Preparation | 200 Practice Questions
,Domain: Governance & Organizational Structure
7. The term 'span of control' in management refers to:
A. The geographic area a manager oversees
B. The number of subordinates a manager directly supervises
C. The financial budget a manager controls
D. The number of departments in a hospital
ANSWER : B. The number of subordinates a manager directly supervises
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Domain: Governance & Organizational Structure
8. Medical staff bylaws in a hospital serve primarily to:
A. Replace the hospital's administrative policies
B. Govern the self-regulation and clinical activities of the medical staff
C. Set financial compensation for physicians
D. Establish community benefit programs
ANSWER : B. Govern the self-regulation and clinical activities of the
medical staff
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Domain: Governance & Organizational Structure
9. A joint operating agreement between two hospitals typically involves:
A. Full merger of assets and liabilities
B. Collaborative operations while maintaining separate legal entities
C. Transfer of all employees
D. Dissolution of one organization
ANSWER : B. Collaborative operations while maintaining separate legal
entities
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Domain: Governance & Organizational Structure
10. The purpose of a hospital's conflict of interest policy is to:
A. Prevent all board members from owning businesses
FACHE Exam Preparation | 200 Practice Questions
, B. Ensure decisions are made for organizational benefit, not personal gain
C. Limit physician practice to one hospital
D. Require disclosure of all personal finances
ANSWER : B. Ensure decisions are made for organizational benefit, not
personal gain
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─────────────────────────────────
Domain: Governance & Organizational Structure
11. Which of the following best describes 'shared governance' in nursing?
A. Nurses share governance duties with physicians
B. Staff nurses participate in decision-making about clinical practice
C. A hospital is jointly owned by multiple health systems
D. Nursing managers rotate leadership responsibilities
ANSWER : B. Staff nurses participate in decision-making about clinical
practice
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─────────────────────────────────
Domain: Governance & Organizational Structure
12. A hospital's credentials committee is responsible for:
A. Approving the hospital budget
B. Reviewing and recommending medical staff privileges
C. Managing employee performance reviews
D. Overseeing patient satisfaction surveys
ANSWER : B. Reviewing and recommending medical staff privileges
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─────────────────────────────────
Domain: Governance & Organizational Structure
13. The primary role of an integrated delivery system (IDS) is to:
A. Focus solely on acute inpatient care
B. Provide a continuum of health services across the care spectrum
C. Operate only in rural communities
D. Replace all fee-for-service payment models
FACHE Exam Preparation | 200 Practice Questions
BOARD OF GOVERNORS EXAM | 100% VERIFIED REAL QUESTIONS AND ANSWERS |
LATEST 2026/2027 VERSION (PASS GUARANTEE)
1. The primary responsibility of a hospital board of trustees is to:
A. Manage day-to-day clinical operations
B. Hire and evaluate the CEO and ensure organizational accountability
C. Approve all patient care protocols
D. Negotiate physician contracts
ANSWER : B. Hire and evaluate the CEO and ensure organizational
accountability
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
2. Which governance model is most commonly used in not-for-profit hospitals?
A. Unitary board
B. Corporate board
C. Advisory board
D. Self-perpetuating board
ANSWER : D. Self-perpetuating board
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
3. The Sarbanes-Oxley Act primarily affects healthcare organizations by:
A. Mandating clinical quality standards
B. Requiring financial transparency and accountability in publicly traded
companies
C. Regulating physician credentialing
D. Setting nurse-to-patient staffing ratios
FACHE Exam Preparation | 200 Practice Questions
,ANSWER : B. Requiring financial transparency and accountability in
publicly traded companies
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
4. In a matrix organizational structure, employees report to:
A. Only their direct supervisor
B. Both a functional manager and a project/product manager
C. The CEO directly
D. An external regulatory body
ANSWER : B. Both a functional manager and a project/product manager
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
5. Which type of organizational structure is most appropriate for a large,
diversified health system?
A. Functional structure
B. Divisional structure
C. Simple flat structure
D. Virtual organization
ANSWER : B. Divisional structure
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
6. A hospital CEO is directly accountable to:
A. The medical staff
B. The board of trustees
C. The department heads
D. The state health department
ANSWER : B. The board of trustees
───────────────────────────────────────────────
─────────────────────────────────
FACHE Exam Preparation | 200 Practice Questions
,Domain: Governance & Organizational Structure
7. The term 'span of control' in management refers to:
A. The geographic area a manager oversees
B. The number of subordinates a manager directly supervises
C. The financial budget a manager controls
D. The number of departments in a hospital
ANSWER : B. The number of subordinates a manager directly supervises
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
8. Medical staff bylaws in a hospital serve primarily to:
A. Replace the hospital's administrative policies
B. Govern the self-regulation and clinical activities of the medical staff
C. Set financial compensation for physicians
D. Establish community benefit programs
ANSWER : B. Govern the self-regulation and clinical activities of the
medical staff
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
9. A joint operating agreement between two hospitals typically involves:
A. Full merger of assets and liabilities
B. Collaborative operations while maintaining separate legal entities
C. Transfer of all employees
D. Dissolution of one organization
ANSWER : B. Collaborative operations while maintaining separate legal
entities
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
10. The purpose of a hospital's conflict of interest policy is to:
A. Prevent all board members from owning businesses
FACHE Exam Preparation | 200 Practice Questions
, B. Ensure decisions are made for organizational benefit, not personal gain
C. Limit physician practice to one hospital
D. Require disclosure of all personal finances
ANSWER : B. Ensure decisions are made for organizational benefit, not
personal gain
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
11. Which of the following best describes 'shared governance' in nursing?
A. Nurses share governance duties with physicians
B. Staff nurses participate in decision-making about clinical practice
C. A hospital is jointly owned by multiple health systems
D. Nursing managers rotate leadership responsibilities
ANSWER : B. Staff nurses participate in decision-making about clinical
practice
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
12. A hospital's credentials committee is responsible for:
A. Approving the hospital budget
B. Reviewing and recommending medical staff privileges
C. Managing employee performance reviews
D. Overseeing patient satisfaction surveys
ANSWER : B. Reviewing and recommending medical staff privileges
───────────────────────────────────────────────
─────────────────────────────────
Domain: Governance & Organizational Structure
13. The primary role of an integrated delivery system (IDS) is to:
A. Focus solely on acute inpatient care
B. Provide a continuum of health services across the care spectrum
C. Operate only in rural communities
D. Replace all fee-for-service payment models
FACHE Exam Preparation | 200 Practice Questions
