BUSI 311 Introduction to Healthcare
Administration
Final Exam Review (Qns & Ans)
2025
1. Which management function in healthcare administration
involves setting goals and deciding how to achieve them?
A. Leading
B. Planning
C. Controlling
D. Organizing
ANS: B. Planning
Rationale: Planning involves defining organizational goals
and determining strategies to achieve them.
©2025
,2. What legislation prevents hospitals from discharging unstable
patients due to their inability to pay?
A. HIPAA
B. EMTALA
C. PPACA
D. COBRA
ANS: B. EMTALA
Rationale: The Emergency Medical Treatment and Labor Act
(EMTALA) ensures patients receive emergency care regardless of
their ability to pay.
3. Which leadership style focuses on collaboration and decision-
making by involving team members?
A. Autocratic
B. Transformational
C. Participative
D. Laissez-faire
ANS: C. Participative
Rationale: Participative leadership encourages team
collaboration and joint decision-making.
©2025
,4. Which financial statement provides an overview of a healthcare
organization's financial position at a specific point in time?
A. Income statement
B. Balance sheet
C. Statement of cash flows
D. Budget report
ANS: B. Balance sheet
Rationale: The balance sheet summarizes assets, liabilities,
and equity at a specific moment.
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True/False Questions
5. Healthcare administrators are primarily responsible for the
direct medical care of patients.
ANS: False
Rationale: Administrators oversee operations, finances, and
strategic planning but do not directly provide clinical care.
6. Benchmarking involves comparing an organization’s
performance against industry standards.
ANS: True
©2025
, Rationale: Benchmarking is a tool used to measure and
improve performance by identifying best practices.
7. Nonprofit healthcare organizations are exempt from paying
taxes but must reinvest surplus earnings into the organization.
ANS: True
Rationale: Nonprofits operate to serve public interests and
reinvest earnings into services and facilities.
---
Fill-in-the-Blank Questions
8. The ________ model focuses on the continuous improvement
of processes to enhance quality in healthcare.
ANS: Total Quality Management (TQM)
Rationale: TQM emphasizes continuous improvement in
organizational processes to ensure quality.
9. The management function that involves monitoring
performance and taking corrective actions is ________.
ANS: Controlling
Rationale: Controlling ensures organizational goals are met
by assessing performance and implementing adjustments.
©2025
Administration
Final Exam Review (Qns & Ans)
2025
1. Which management function in healthcare administration
involves setting goals and deciding how to achieve them?
A. Leading
B. Planning
C. Controlling
D. Organizing
ANS: B. Planning
Rationale: Planning involves defining organizational goals
and determining strategies to achieve them.
©2025
,2. What legislation prevents hospitals from discharging unstable
patients due to their inability to pay?
A. HIPAA
B. EMTALA
C. PPACA
D. COBRA
ANS: B. EMTALA
Rationale: The Emergency Medical Treatment and Labor Act
(EMTALA) ensures patients receive emergency care regardless of
their ability to pay.
3. Which leadership style focuses on collaboration and decision-
making by involving team members?
A. Autocratic
B. Transformational
C. Participative
D. Laissez-faire
ANS: C. Participative
Rationale: Participative leadership encourages team
collaboration and joint decision-making.
©2025
,4. Which financial statement provides an overview of a healthcare
organization's financial position at a specific point in time?
A. Income statement
B. Balance sheet
C. Statement of cash flows
D. Budget report
ANS: B. Balance sheet
Rationale: The balance sheet summarizes assets, liabilities,
and equity at a specific moment.
---
True/False Questions
5. Healthcare administrators are primarily responsible for the
direct medical care of patients.
ANS: False
Rationale: Administrators oversee operations, finances, and
strategic planning but do not directly provide clinical care.
6. Benchmarking involves comparing an organization’s
performance against industry standards.
ANS: True
©2025
, Rationale: Benchmarking is a tool used to measure and
improve performance by identifying best practices.
7. Nonprofit healthcare organizations are exempt from paying
taxes but must reinvest surplus earnings into the organization.
ANS: True
Rationale: Nonprofits operate to serve public interests and
reinvest earnings into services and facilities.
---
Fill-in-the-Blank Questions
8. The ________ model focuses on the continuous improvement
of processes to enhance quality in healthcare.
ANS: Total Quality Management (TQM)
Rationale: TQM emphasizes continuous improvement in
organizational processes to ensure quality.
9. The management function that involves monitoring
performance and taking corrective actions is ________.
ANS: Controlling
Rationale: Controlling ensures organizational goals are met
by assessing performance and implementing adjustments.
©2025
