LATEST 2026 2027 PRACTICE
QUESTIONS & STUDY GUIDE
Q1. A nurse executive is implementing shared governance. Which first step best
supports success?
A) Assign unit-based councils to managers
B) Conduct a staff readiness assessment
C) Mandate council attendance
D) Eliminate nurse manager positions
Correct Answer: B
Rationale: A readiness assessment identifies gaps in knowledge, skills, and
resources before implementation. Mandating attendance creates resistance;
eliminating managers removes needed support.
Q2. Which leadership style is most effective for directing organizational change in
complex healthcare systems?
A) Autocratic
B) Transactional
C) Transformational
D) Laissez-faire
Correct Answer: C
Rationale: Transformational leadership inspires innovation, engagement, and
adaptability, essential in complex healthcare environments.
Q3. What is the primary purpose of a balanced scorecard in healthcare
organizations?
A) Budget planning
B) Staff scheduling
,C) Strategic performance measurement
D) Patient satisfaction surveys
Correct Answer: C
Rationale: A balanced scorecard aligns organizational activities with vision and
strategy, tracking financial, customer, internal process, and learning/growth
metrics.
Q4. A chief nursing officer (CNO) notices increasing siloed departments. Which
leadership approach is most effective?
A) Create a joint ED-ICU committee with shared metrics
B) Redesign both units’ reporting structures separately
C) Build a multi-disciplinary unit pre-diagnosis data
D) Rotate ED nurses to ICU without input
Correct Answer: A
Rationale: A collaborative structure with shared goals breaks down silos; separate
redesigns or unilateral rotations increase resistance.
Q5. During a merger, staff express anxiety about job security. The CNO’s initial
action should be:
A) Promise no layoffs will occur
B) Hold weekly town halls with transparent updates
C) Eliminate all non-clinical meetings
D) Send a reassuring email from HR
Correct Answer: B
Rationale: Regular, transparent, two-way communication reduces uncertainty.
Promising no layoffs may be false; eliminating meetings reduces communication.
Q6. What is the first step in the change process according to Lewin’s model?
A) Refreeze
B) Change
C) Unfreeze
D) Evaluate
,Correct Answer: C
Rationale: Unfreezing prepares the organization for change by creating motivation
and recognizing the need for change before moving to new behaviors.
Q7. A nurse executive is conducting a strategic planning review. Which initial step
is most critical?
A) Draft a budget for each initiative
B) Conduct a SWOT analysis
C) Assign in-person training activities
D) Approve all plans by vote
Correct Answer: B
Rationale: SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
informs realistic strategy development; budgeting without analysis is uninformed.
Q8. Which leadership behavior best promotes psychological safety in nursing
units?
A) Publicly recognizing near-miss reports
B) Disciplining staff who question orders
C) Requiring anonymous suggestion boxes only
D) Holding monthly compliance audits
Correct Answer: A
Rationale: Public recognition of reporting near-misses reduces fear of blame and
encourages transparency; disciplining destroys safety.
Q9. What is a primary focus of executive-level strategic management?
A) Daily operational tasks
B) Long-term organizational vision
C) Reducing staff training
D) Limiting policy changes
Correct Answer: B
Rationale: Executive focus is guiding the organization toward long-term goals, not
day-to-day operations.
, Q10. Which organizational characteristic is most relevant to successful change
implementation?
A) Leadership style that avoids conflict
B) Implementation using a change management framework
C) Leading staff behavior through micromanagement
D) Limiting innovation to reduce risk
Correct Answer: B
Rationale: A structured change management framework (e.g., Kotter, Lewin)
increases success; avoiding conflict or micromanagement hinders progress.
Q11. A nurse manager notices increased turnover on a medical-surgical unit. The
first step in a root cause analysis is:
A) Fire the unit manager
B) Form a multidisciplinary team to identify contributing factors
C) Increase staffing ratios immediately
D) Send a satisfaction survey to all nurses
Correct Answer: B
Rationale: A root cause analysis begins with assembling a team to systematically
identify factors; immediate staffing changes without analysis may miss causes.
Q12. Which financial metric measures the percentage of revenue remaining after
operating expenses?
A) Operating margin
B) Return on investment (ROI)
C) Current ratio
D) Days in accounts receivable
Correct Answer: A
Rationale: Operating margin = (operating income / total revenue) × 100; it
indicates profitability from core operations.