FACHE - ACHE BOG EXAM NEWEST 2026 ACTUAL
EXAM TEST BANK| AMERICAN COLLEGE OF
HEALTHCARE EXECUTIVES BOARD OF GOVERNORS
EXAMINATION FOR FACHE CREDENTIAL WITH
COMPLETE 500 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED A+
(MOST RECENT!
Q1. The finance committee of the Board is responsible for:
A) Awarding CEO increases and bonuses
B) Acting on behalf of the Board in their absence
C) Monitoring budget performance
D) Permitting joint ventures with other corporations
Correct Answer: C
Rationale: This is correct because the finance committee of the
board is specifically charged with monitoring budget
performance, reviewing financial statements, and overseeing the
organization's fiscal health. The full board typically handles CEO
compensation, while the executive committee acts on behalf of
the board between meetings .
1
,Q2. Which of the following should be included in an
organization's mission statement?
A) Ethics
B) Services
C) Strategies
D) Facilities
Correct Answer: B
Rationale: This is correct because a mission statement should
describe what the organization does—its core services and
functions. Strategic plans and implementation details belong in
separate planning documents, while the mission focuses on the
organization's fundamental purpose and the services it provides
to the community .
Q3. The duty of loyalty requires that:
A) A board member discloses all of their assets before becoming
a board member
B) A board member belongs to as few healthcare organizations
as possible
C) A board member refrains from conflicts of interest
D) A board member serves out his/her entire term
2
,Correct Answer: C
Rationale: This is correct because the duty of loyalty requires
board members to act in the best interest of the organization
and avoid situations where personal interests conflict with
organizational interests. This includes disclosing potential conflicts
and abstaining from related decisions .
Q4. The CEO of a hospital reports to the:
A) Board chair
B) The executive committee of the board
C) The compensation and evaluation committee of the board
D) The entire board
Correct Answer: D
Rationale: This is correct because the CEO is accountable to the
full board of directors, not just a subset or individual members.
While various committees may provide input on specific matters
(compensation, evaluation, executive sessions), the ultimate
authority rests with the entire board as a collective body .
Q5. The danger of having a large board (> 17 members) is:
A) The board can never have a quorum
B) The board will not be able to elect a chair person
C) There will be too many committees
3
, D) The executive committee will make all of the important
decisions
Correct Answer: D
Rationale: This is correct because when boards become very
large (typically over 17 members), the executive committee
tends to assume greater decision-making authority, effectively
making key decisions before full board meetings. This can
marginalize non-executive committee members and undermine
full board engagement .
Q6. The first role of the governing body is to:
A) Manage inputs of the healthcare organization to achieve the
output that are its goals
B) Recruit members who understand the health services field
C) Set objectives and develop policy to guide the organization in
achieving its mission
D) Develop the operating plan and monitor departmental
performance
Correct Answer: C
Rationale: This is correct because the primary role of the
governing body (board) is to set the organization's direction,
establish objectives, and develop policies that guide the
4
EXAM TEST BANK| AMERICAN COLLEGE OF
HEALTHCARE EXECUTIVES BOARD OF GOVERNORS
EXAMINATION FOR FACHE CREDENTIAL WITH
COMPLETE 500 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED A+
(MOST RECENT!
Q1. The finance committee of the Board is responsible for:
A) Awarding CEO increases and bonuses
B) Acting on behalf of the Board in their absence
C) Monitoring budget performance
D) Permitting joint ventures with other corporations
Correct Answer: C
Rationale: This is correct because the finance committee of the
board is specifically charged with monitoring budget
performance, reviewing financial statements, and overseeing the
organization's fiscal health. The full board typically handles CEO
compensation, while the executive committee acts on behalf of
the board between meetings .
1
,Q2. Which of the following should be included in an
organization's mission statement?
A) Ethics
B) Services
C) Strategies
D) Facilities
Correct Answer: B
Rationale: This is correct because a mission statement should
describe what the organization does—its core services and
functions. Strategic plans and implementation details belong in
separate planning documents, while the mission focuses on the
organization's fundamental purpose and the services it provides
to the community .
Q3. The duty of loyalty requires that:
A) A board member discloses all of their assets before becoming
a board member
B) A board member belongs to as few healthcare organizations
as possible
C) A board member refrains from conflicts of interest
D) A board member serves out his/her entire term
2
,Correct Answer: C
Rationale: This is correct because the duty of loyalty requires
board members to act in the best interest of the organization
and avoid situations where personal interests conflict with
organizational interests. This includes disclosing potential conflicts
and abstaining from related decisions .
Q4. The CEO of a hospital reports to the:
A) Board chair
B) The executive committee of the board
C) The compensation and evaluation committee of the board
D) The entire board
Correct Answer: D
Rationale: This is correct because the CEO is accountable to the
full board of directors, not just a subset or individual members.
While various committees may provide input on specific matters
(compensation, evaluation, executive sessions), the ultimate
authority rests with the entire board as a collective body .
Q5. The danger of having a large board (> 17 members) is:
A) The board can never have a quorum
B) The board will not be able to elect a chair person
C) There will be too many committees
3
, D) The executive committee will make all of the important
decisions
Correct Answer: D
Rationale: This is correct because when boards become very
large (typically over 17 members), the executive committee
tends to assume greater decision-making authority, effectively
making key decisions before full board meetings. This can
marginalize non-executive committee members and undermine
full board engagement .
Q6. The first role of the governing body is to:
A) Manage inputs of the healthcare organization to achieve the
output that are its goals
B) Recruit members who understand the health services field
C) Set objectives and develop policy to guide the organization in
achieving its mission
D) Develop the operating plan and monitor departmental
performance
Correct Answer: C
Rationale: This is correct because the primary role of the
governing body (board) is to set the organization's direction,
establish objectives, and develop policies that guide the
4
