MBA HC Semester 3 Exam Part I - Multiple Choice

MBA HC Semester 3 Exam

Part I - Multiple Choice

 

1.         Data flow diagrams are used as a process modeling technique to analyze processes with symbols and notation. When developing a flow diagram to represent an external entity, what symbol is used?

 

A.        Rounded rectangle

B.        Unidirectional arrow

C.        Square

D.        Rectangle

 

Answer:  __________

 

 

2.         The Professional Model of Practice for information management consists of many activities, inclusive of information engineering, information retrieval, information analysis, and policy development. As part of Mr. Smith's role, he is responsible for the organizational strategic planning process when implementing information systems. What function of the model does this comply with?

 

A.        Information engineering

B.        Information retrieval

C.        Information analysis

D.        Policy development

 

Answer:  __________

 

 

3.         During a gap analysis of organization processes, there are driving forces that determine discrepancies in the competitive position of the organization. If competitive pricing is recognized as a driving force to move the organization from where it is to where it would like to be, what would be the best approach?

 

A.        Market share increase by radio advertisements

B.        Eliminate some product applications to reduce pricing

C.        Automatically lower price of products

D.        Evaluation of product development for competitive pricing

 

Answer:  __________

 

 

4.         Systems can be classified in several ways, such as simple, complex, open, closed, stable, dynamic, permanent, and temporary. Given that complex systems involve many components with complicated relationships, which is an example of a complex classified system?

 

A.        Physician referral system

B.        Hospital information system

C.        Laboratory information system

D.        Pharmacy information system

 

Answer:  __________

 

 

5.         Database systems are very complex, but they provide many controls and efficiencies. A database approach to data storage and retrieval reduces data:

 

A.        relevancy.

B.        redundancy.

C.        incorrectness.

D.        confidentiality.

 

Answer:  __________

 

 

6.         A medical records employee is responsible for the release of medical records for discharged patients. What type of education should the employee receive regarding the release of medical information?

 

A.        Disclosure of patient information

B.        Use of patient information

C.        Protected health information

D.        Best practices

 

Answer:  __________

 

 

7.         A security administrator made a decision to improve the security program of the facility. His first action was to request an overview of the existing security program based on current security norms. What type of assessment was performed?

 

A.        Security mission

B.        Security audit

C.        Security survey

D.        Physical security

 

Answer:  __________

 

8.         A JCAHO surveyor asks for a patient's medical record for review. They will use the medical record to track the patient's visit from beginning to end, interviewing several clinical providers in the process. What type of assessment can be used for this process?

 

A.        Root cause analysis

B.        Worksite analysis

C.        Task analysis

D.        Tracer methodology

 

Answer:  __________

 

 

9.         After performing some research and contacting comparable hospitals, the security manager found that alarm armbands were most effective for infant abductions. What type of methodology can be used to justify the implementation of using alarm armbands?

 

A.        Disclosure

B.        Root cause analysis

C.        Tracer methodology

D.        Best practice

 

Answer:  __________

 

 

10.       In deciding what type of treatment to give a patient, two physicians were involved in an intense argument. The argument evolved into a physical confrontation. The security administrator suspended the physicians. What type of policy could the security administrator have used for defending this disciplinary action?

 

A.        Breach of confidentiality

B.        Negligence

C.        Zero-tolerance

D.        Workplace violence

 

Answer:  __________

 

 

11.       How should a medical ethics committee be constituted? The hospital administration should choose:

 

A.        a broad selection of stakeholders.

B.        the best experts it can find.

C.        the committee members.

D.        people who agree with him or her.

 

Answer:  __________

12.       What logical fallacy is exemplified in the following conversation?  Betty: All human research subjects have a right to be treated as well as possible in the course of a scientific study. Charles: There is no law in the United States that specifically requires this; hence, research subjects have no such rights.

 

A.        False cause

B.        Equivocation

C.        Begging the question

D.        Tu Quoque

 

Answer:  __________

 

 

13.       While undergoing an operation at County Hospital, Mrs. Jones was given a penicillin shot in spite of information on her chart saying that she was allergic.  Mrs. Jones reacted suddenly and was saved only by the heroic efforts of the OR staff.  What would be the hospital's safest option?

 

A.        Tell Mrs. Jones' family what happened, naming the person who made the mistake.

B.        Tell Mrs. Jones' family what happened, without naming the person who made the

            mistake.

C.        Tell no one of the mistake because it caused no permanent harm.

D.        Get the OR crew to swear to tell no one.

 

Answer:  __________

 

 

14.       Dr. Jack Kevorkian inserted an intravenous catheter into the arm of Janet Adkins, diagnosed with Alzheimer's, and instructed her on how to inject poison into her system.  Dr. John Doe referred his "Janet Adkins" to the Hemlock Society Web site; she subsequently committed suicide.  Which of the following statements is NOT true?

 

A.        The acts of Dr. Kevorkian and Dr. Doe are equally unethical because they murdered their

            patients.

B.        Dr. Kevorkian's acts are very similar to V.A.E.  Dr. Doe's acts are similar to assisted

            suicide.

C.        Dr. Kevorkian's acts have great potential to exert physician influence or control over the

            process.  Dr. Doe's do not.

D.        Dr. Kevorkian and Dr. Doe probably acted out of compassion for their patients.

 

Answer:  __________

 

 

 

 

 

15.       The Tuskegee Syphilis Study existed over a span of 30 years.  What fallacy seems to have allowed this program to continue?

 

A.        Ad populum

B.        False cause

C.        Bifurcation

D.        Post hoc ergo propter hoc

 

Answer:  __________

 

 

16.       What type of center should be used when a company is organized into divisions of separate product lines?

 

A.        Profit center

B.        Expense center

C.        Investment center

D.        Revenue center

E.         Standard cost center

 

Answer:  __________

 

 

17.       Instead of conducting traditional market research, a number of companies are:

 

A.        simply following what the market leader does.

B.        probing potential markets with early versions of new products to see which have 

            potential.

C.        developing new, much more sophisticated market research techniques which involve

            global testing.

D.        forming alliances to pool their research findings.

 

 

Answer:  __________

 

18.       When public organizations are privatized, the trend is to have:

 

A.        clients pay a higher percentage of the costs.

B.        clients pay a lower percentage of the costs.

C.        clients apply for subsidies from the government

D.        organizations solicit state agencies for more funding.

E.         organizations sponsor fundraising events.

 

Answer:  __________

 

 

19.       All of the following ratios are used in the calculation of a company's Z-value EXCEPT:

 

A.        working capital/total assets.

B.        retained earnings/total assets.

C.        current assets/current liabilities.

D.        market value of equity/total liabilities.

E.         sales to total assets.

 

Answer:  __________

 

 

20.       The purchasing strategy in which the purchasing company orders a particular part from several vendors is:

 

A.        sole sourcing.

B.        multiple sourcing.

C.        just-in-time sourcing.

D.        backup sourcing.

E.         parallel sourcing.

 

      

MBA HC Semester 3 Exam_Part II_Ver 1

MBA HC Semester 3 Exam

Part II – Scenario Analysis

"Mercy Me" Memorial Hospital

Mercy Memorial Hospital is located in a rural town in southwestern Wyoming called Friendship Circle. Most people in Friendship Circle have known one another all of their lives, as have their parents and grandparents, and for the most part, Friendship Circle is a peaceful little town.

 

Mercy Memorial Hospital treats emergency room patients; for example, last week a seven-year-old boy fell out of the tree house he and his friend were building and had to have his arm set in a cast and needed two stitches above his eyebrow. A few local doctors also perform minor surgeries at Mercy Memorial, but on a routine basis only. Sometimes patients are transferred to Mercy Memorial from the local nursing home if they get dehydrated or if they contract the flu.

 

The County Commission has always been pleased with the hospital administrator. Even though the hospital is small in comparison to others in the nearby "big city," costs have been fairly well contained, the county has not had to float any bonds, and the commissioner has not had to sponsor any county government fundraising for the hospital budget.

 

This past year Ira Ames, longtime hospital administrator, retired at 78; he decided that he wanted to spend more time tending to his prize-winning decorative flower garden. The town gave him a grand send-off before hiring another administrator for the hospital. Finding someone to take Ira's place was not easy, but a young man named Colton Pierce was chosen for the task. The hospital board thought Colton was a nice enough young man when he was hired, but actually, Colton has caused quite a bit of trouble for them lately. For one thing, the young man keeps talking about "hips" or "hippos," or some such nonsense. The board chairperson, Dirk Howell, although a life long admirer of Ira Ames, has been doing some investigating on his own and has begun to realize that the hospital may actually need some revamping. Since Dirk is also on the county commission, he is afraid that if anything goes wrong at the hospital, that the way of life in Friendship Circle might drastically change. He decides that something must be done to help Colton Pierce and to ease everyone else's concerns, so he hires you.

 

You are a consultant with Cannon Information Technology. You specialize in advising health care organizations on how to comply with the HIPAA security provisions. Dirk explains that although Mercy Memorial does not seem to have any security problems that he can see, he has been doing some outside reading and has become concerned about the level and quality of the hospital's "technical security services." He asks for your advice.

 

You discuss your services with him and agree to write a memo that advises and fully describes to Mercy Memorial Hospital the five (5) controls normally included in a technical security services program. In your memo, you will also explain how each of these five (5) controls helps to insure HIPAA compliance.

Risky Business

 

You are the risk manager at Winston General Hospital. Each quarter you meet with the hospital's malpractice carrier, the hospital attorney, the director of nurses, and the chief medical officer to review the status of malpractice claims.

 

This year, an alarming pattern of suits is attributable to improper patient care. Several cases have involved the improper administration of pharmaceuticals. Other cases have involved the improper supervision of staff nurses in the pediatric and emergency departments. An increased number of claims are related to physicians failing to diagnose patients' symptoms properly. Additionally, several of the hospital's employed and contracted physicians have not been properly credentialed.

 

In your analysis of the situation you determine that there are four (4) specific risks: medication errors, diagnosis failures, negligent supervision, and lack of proper credentialing or technical skill. You are asked to develop a plan that addresses and remedies each of these risks. Make eight (8) recommendations concerning medication errors, two (2) recommendations regarding diagnosis failures, two (2) recommendations concerning negligent supervision, and two (2) recommendations regarding proper credentialing or technical skills.

  

 

 

MBA HC Semester 3 Exam Part I and II

MBA HC Semester 3 Exam

Part I - Multiple Choice

 

1.         Data flow diagrams are used as a process modeling technique to analyze processes with symbols and notation. When developing a flow diagram to represent an external entity, what symbol is used?

 

A.        Rounded rectangle

B.        Unidirectional arrow

C.        Square

D.        Rectangle

 

Answer:  __________

 

 

2.         The Professional Model of Practice for information management consists of many activities, inclusive of information engineering, information retrieval, information analysis, and policy development. As part of Mr. Smith's role, he is responsible for the organizational strategic planning process when implementing information systems. What function of the model does this comply with?

 

A.        Information engineering

B.        Information retrieval

C.        Information analysis

D.        Policy development

 

Answer:  __________

 

 

3.         During a gap analysis of organization processes, there are driving forces that determine discrepancies in the competitive position of the organization. If competitive pricing is recognized as a driving force to move the organization from where it is to where it would like to be, what would be the best approach?

 

A.        Market share increase by radio advertisements

B.        Eliminate some product applications to reduce pricing

C.        Automatically lower price of products

D.        Evaluation of product development for competitive pricing

 

Answer:  __________

 

 

4.         Systems can be classified in several ways, such as simple, complex, open, closed, stable, dynamic, permanent, and temporary. Given that complex systems involve many components with complicated relationships, which is an example of a complex classified system?

 

A.        Physician referral system

B.        Hospital information system

C.        Laboratory information system

D.        Pharmacy information system

 

Answer:  __________

 

 

5.         Database systems are very complex, but they provide many controls and efficiencies. A database approach to data storage and retrieval reduces data:

 

A.        relevancy.

B.        redundancy.

C.        incorrectness.

D.        confidentiality.

 

Answer:  __________

 

 

6.         A medical records employee is responsible for the release of medical records for discharged patients. What type of education should the employee receive regarding the release of medical information?

 

A.        Disclosure of patient information

B.        Use of patient information

C.        Protected health information

D.        Best practices

 

Answer:  __________

 

 

7.         A security administrator made a decision to improve the security program of the facility. His first action was to request an overview of the existing security program based on current security norms. What type of assessment was performed?

 

A.        Security mission

B.        Security audit

C.        Security survey

D.        Physical security

 

Answer:  __________

 

8.         A JCAHO surveyor asks for a patient's medical record for review. They will use the medical record to track the patient's visit from beginning to end, interviewing several clinical providers in the process. What type of assessment can be used for this process?

 

A.        Root cause analysis

B.        Worksite analysis

C.        Task analysis

D.        Tracer methodology

 

Answer:  __________

 

 

9.         After performing some research and contacting comparable hospitals, the security manager found that alarm armbands were most effective for infant abductions. What type of methodology can be used to justify the implementation of using alarm armbands?

 

A.        Disclosure

B.        Root cause analysis

C.        Tracer methodology

D.        Best practice

 

Answer:  __________

 

 

10.       In deciding what type of treatment to give a patient, two physicians were involved in an intense argument. The argument evolved into a physical confrontation. The security administrator suspended the physicians. What type of policy could the security administrator have used for defending this disciplinary action?

 

A.        Breach of confidentiality

B.        Negligence

C.        Zero-tolerance

D.        Workplace violence

 

Answer:  __________

 

 

11.       How should a medical ethics committee be constituted? The hospital administration should choose:

 

A.        a broad selection of stakeholders.

B.        the best experts it can find.

C.        the committee members.

D.        people who agree with him or her.

 

Answer:  __________

12.       What logical fallacy is exemplified in the following conversation?  Betty: All human research subjects have a right to be treated as well as possible in the course of a scientific study. Charles: There is no law in the United States that specifically requires this; hence, research subjects have no such rights.

 

A.        False cause

B.        Equivocation

C.        Begging the question

D.        Tu Quoque

 

Answer:  __________

 

 

13.       While undergoing an operation at County Hospital, Mrs. Jones was given a penicillin shot in spite of information on her chart saying that she was allergic.  Mrs. Jones reacted suddenly and was saved only by the heroic efforts of the OR staff.  What would be the hospital's safest option?

 

A.        Tell Mrs. Jones' family what happened, naming the person who made the mistake.

B.        Tell Mrs. Jones' family what happened, without naming the person who made the

            mistake.

C.        Tell no one of the mistake because it caused no permanent harm.

D.        Get the OR crew to swear to tell no one.

 

Answer:  __________

 

 

14.       Dr. Jack Kevorkian inserted an intravenous catheter into the arm of Janet Adkins, diagnosed with Alzheimer's, and instructed her on how to inject poison into her system.  Dr. John Doe referred his "Janet Adkins" to the Hemlock Society Web site; she subsequently committed suicide.  Which of the following statements is NOT true?

 

A.        The acts of Dr. Kevorkian and Dr. Doe are equally unethical because they murdered their

            patients.

B.        Dr. Kevorkian's acts are very similar to V.A.E.  Dr. Doe's acts are similar to assisted

            suicide.

C.        Dr. Kevorkian's acts have great potential to exert physician influence or control over the

            process.  Dr. Doe's do not.

D.        Dr. Kevorkian and Dr. Doe probably acted out of compassion for their patients.

 

Answer:  __________

 

 

 

 

 

15.       The Tuskegee Syphilis Study existed over a span of 30 years.  What fallacy seems to have allowed this program to continue?

 

A.        Ad populum

B.        False cause

C.        Bifurcation

D.        Post hoc ergo propter hoc

 

Answer:  __________

 

 

16.       What type of center should be used when a company is organized into divisions of separate product lines?

 

A.        Profit center

B.        Expense center

C.        Investment center

D.        Revenue center

E.         Standard cost center

 

Answer:  __________

 

 

17.       Instead of conducting traditional market research, a number of companies are:

 

A.        simply following what the market leader does.

B.        probing potential markets with early versions of new products to see which have 

            potential.

C.        developing new, much more sophisticated market research techniques which involve

            global testing.

D.        forming alliances to pool their research findings.

 

 

Answer:  __________

 

18.       When public organizations are privatized, the trend is to have:

 

A.        clients pay a higher percentage of the costs.

B.        clients pay a lower percentage of the costs.

C.        clients apply for subsidies from the government

D.        organizations solicit state agencies for more funding.

E.         organizations sponsor fundraising events.

 

Answer:  __________

 

 

19.       All of the following ratios are used in the calculation of a company's Z-value EXCEPT:

 

A.        working capital/total assets.

B.        retained earnings/total assets.

C.        current assets/current liabilities.

D.        market value of equity/total liabilities.

E.         sales to total assets.

 

Answer:  __________

 

 

20.       The purchasing strategy in which the purchasing company orders a particular part from several vendors is:

 

A.        sole sourcing.

B.        multiple sourcing.

C.        just-in-time sourcing.

D.        backup sourcing.

E.         parallel sourcing.

 

 

MBA HC Semester 3 Exam

Part II – Scenario Analysis

"Mercy Me" Memorial Hospital

Mercy Memorial Hospital is located in a rural town in southwestern Wyoming called Friendship Circle. Most people in Friendship Circle have known one another all of their lives, as have their parents and grandparents, and for the most part, Friendship Circle is a peaceful little town.

 

Mercy Memorial Hospital treats emergency room patients; for example, last week a seven-year-old boy fell out of the tree house he and his friend were building and had to have his arm set in a cast and needed two stitches above his eyebrow. A few local doctors also perform minor surgeries at Mercy Memorial, but on a routine basis only. Sometimes patients are transferred to Mercy Memorial from the local nursing home if they get dehydrated or if they contract the flu.

 

The County Commission has always been pleased with the hospital administrator. Even though the hospital is small in comparison to others in the nearby "big city," costs have been fairly well contained, the county has not had to float any bonds, and the commissioner has not had to sponsor any county government fundraising for the hospital budget.

 

This past year Ira Ames, longtime hospital administrator, retired at 78; he decided that he wanted to spend more time tending to his prize-winning decorative flower garden. The town gave him a grand send-off before hiring another administrator for the hospital. Finding someone to take Ira's place was not easy, but a young man named Colton Pierce was chosen for the task. The hospital board thought Colton was a nice enough young man when he was hired, but actually, Colton has caused quite a bit of trouble for them lately. For one thing, the young man keeps talking about "hips" or "hippos," or some such nonsense. The board chairperson, Dirk Howell, although a life long admirer of Ira Ames, has been doing some investigating on his own and has begun to realize that the hospital may actually need some revamping. Since Dirk is also on the county commission, he is afraid that if anything goes wrong at the hospital, that the way of life in Friendship Circle might drastically change. He decides that something must be done to help Colton Pierce and to ease everyone else's concerns, so he hires you.

 

You are a consultant with Cannon Information Technology. You specialize in advising health care organizations on how to comply with the HIPAA security provisions. Dirk explains that although Mercy Memorial does not seem to have any security problems that he can see, he has been doing some outside reading and has become concerned about the level and quality of the hospital's "technical security services." He asks for your advice.

 

You discuss your services with him and agree to write a memo that advises and fully describes to Mercy Memorial Hospital the five (5) controls normally included in a technical security services program. In your memo, you will also explain how each of these five (5) controls helps to insure HIPAA compliance.

Risky Business

 

You are the risk manager at Winston General Hospital. Each quarter you meet with the hospital's malpractice carrier, the hospital attorney, the director of nurses, and the chief medical officer to review the status of malpractice claims.

 

This year, an alarming pattern of suits is attributable to improper patient care. Several cases have involved the improper administration of pharmaceuticals. Other cases have involved the improper supervision of staff nurses in the pediatric and emergency departments. An increased number of claims are related to physicians failing to diagnose patients' symptoms properly. Additionally, several of the hospital's employed and contracted physicians have not been properly credentialed.

 

In your analysis of the situation you determine that there are four (4) specific risks: medication errors, diagnosis failures, negligent supervision, and lack of proper credentialing or technical skill. You are asked to develop a plan that addresses and remedies each of these risks. Make eight (8) recommendations concerning medication errors, two (2) recommendations regarding diagnosis failures, two (2) recommendations concerning negligent supervision, and two (2) recommendations regarding proper credentialing or technical skills.

 

    

MBA HC Semester 2 Exam_Part II_Ver 1

A Plague Upon Us

You are an epidemiologist with the Department of Health and Human Services in Washington, D.C. You met this morning with the department director. She is concerned about the return of certain diseases, long considered conquered, such as the bubonic plague and polio, as these diseases have re-emerged in Africa and India in the past decade. The director is confident that the public health standards in the U.S. would not make the emergence or reemergence of those diseases on U.S. soil likely. However, since the risk of harm is so great if the diseases did emerge or re-emerge, she feels it is important to conduct a study/investigation of this matter. In addition, there is also a concern about bioterrorism in the U.S. in which terrorists could introduce "plague diseases," such as small pox into the U.S. deliberately, and thus a study/investigation into the matter is doubly relevant.

 

Your orientation into this investigation is from the standpoint of a managerial epidemiologist, meaning that you are attempting to develop a strategic plan to prevent and control these potentially large-scale diseases. You are to draw up a preliminary memo that discusses five (5) primary objectives of managerial epidemiology and methodology to find the root cause of the reemergence in these third-world nations and five (5) possible techniques you could use to conduct this study. In your memo, be sure to be as specific as possible as to how you might address a catastrophic emergence of one or both of these diseases.

 

You may wish to refer to the MH601 Graduate Student Learning Guide, Lecture and Research Update, Assignment #3, pp. 3-4.

Double Vision

 

You are the administrator at Vision Health Care, Inc., a managed care organization. You are particularly pleased to have recruited three new physicians groups in the last two weeks. One of these groups of contracted physicians, Radiology Center of California, is located in Rosedale, California. The Center has never been a part of a managed care plan before. In fact, whenever they had been approached in the past, they had been highly resistant to the idea of managed care. The physicians at the Center are "old school," all of them beginning their careers in the middle 1980s when Fee-For-Service was the primary mode of reimbursement.

 

In the last few years, however, they have suffered declining revenues as they have lost patients and failed to attract new ones because of the employer-sponsored managed care programs that now cover many patients. These patients desire the simplicity of handing the plastic membership card to the receptionist, who passes it off to someone else in the office, who then takes care of all of the billing aspects of the patients' visits. The physicians in the Center have begun to recognize the need to contract with health plans.

 

Reviewing their file, you are especially impressed with the physicians group at the Radiology Center of California. Their skills and the level of their technology are exceptional. You know that this account will be an asset to your company, and you are determined to make the transition as smooth as possible for the physicians at the Center. You decide to meet with them as soon as possible to acquaint them with the incentives that are provided to physicians who contract with the plan.

 

You now must design two incentive plans that will motivate the physicians and direct them to meet your organization's goals of quality, access, and low cost for plan members. One of the plans should be a capitation-fixed plan and the other should be a performance-based plan.

 

    

MBA HC Semester 2 Exam_Part I_Ver 1

 

 

 

 

 

Name:  ______________________________

 

Student #:  GA _______________________

 

 

1.         Which of the following is NOT a function of management planning?

 

A.        Helps an organization anticipate the future

B.        Is both tactical and strategic

C.        Includes staffing

D.        Is a continuous process

 

Answer:  __________

 

 

2.         Which of the following statements pertains to the purpose of public health surveillance and how it is implemented?

 

A.        Monitoring changes in disease agents through laboratory testing

B.        Watches for global epidemics

C.        Defines conditions as "pandemic" when incidence and prevalence levels reach

            predetermined levels

D.        Supplies a network of public health staff to monitor global health conditions

 

Answer:  __________

 

 

3.         Effective communication engagement requires which of the following processes?

 

A.        Establishment of an organizational structure that ensures that all members have similar opportunities to influence the processes and outcomes of  a designated group

B.        Good relations with the press and other public media

C.        Having local public health meetings that synchronize agendas with the respective state

            and federal government agendas

D.        Keeping all public health employees informed of the latest disease projections

 

Answer:  __________

 

 

 

 

 

 

 

 

4.         Statutory limitations in public health are imposed by whom?

 

A.        An entity's enabling legislation

B.        The Department of Public Health

C.        The Federal Government

D.        The Director of Public Health

 

Answer:  __________

 

 

5.         Which of the following may be included in a definition of epidemiology?

 

A.        Application of study data to control health problems

B.        A subject taught in medical schools

C.        The study of epidemics, their history, and future potentials

D.        Originated with Florence Nightingale's research in bacteriology

 

Answer:  __________

 

 

6.         An indicator of earnings management is the:

 

A.        inventory costs on the first-in, first-out basis, regardless of the physical flow of the goods.

B.        use of the straight-line method of depreciation for all fixed assets.

C.        continued overestimation of the useful lives and residual values of fixed assets.

D.        front-end loading of expenses.

 

Answer:  __________

 

 

7.         Company X does not capitalize an asset leased from Company Y because it is not required to do so under GAAP. In analyzing Company X, one would capitalize the leased asset when:

 

A.        GAAP permits the option of doing so.

B.        the benefits of leasing an asset outweigh those of purchasing it.

C.        Company Y does not want to capitalize the leased asset.

D.        Company X assumes the risks and rewards associated with the leased asset.

 

Answer:  __________

 

 

 

 

 

 

8.         An analyst uses analytical judgment primarily to understand:

 

A.        pro forma financial statements.

B.        generally accepted accounting principles.

C.        the economic reality that underlies the financial disclosures.

D.        the nominal dollar concept of capital maintenance.

 

Answer:  __________

 

 

9.         Which of the following situations would cause analysts to be alarmed?

 

A.        An increase in the cash collected as a percentage of revenues.

B.        A decrease in cash collected from customers compared to that paid to suppliers.

C.        An increase in cash collected from customers compared to that paid to suppliers.

D.        A decrease in the cash paid as a percentage of cost of goods sold

 

Answer:  __________

 

 

10.       A financially distressed entity's balance sheet would most likely consist of:

 

A.        immaterial amounts of current assets and a substantial amount of long-term assets.

B.        substantial amounts of long-term debt and a relatively small and non-productive long-term asset base.

C.        large amounts of both current assets and current liabilities.

D.        sufficient revenues but insufficient earnings.

 

Answer:           __________

 

 

11.       There has been a continuous rise in the cost of health care in the U.S. Many things have contributed to that rise, but one thing generally NOT identified as a cause is:

 

A.        new technology.

B.        people living longer.

C.        new cures for diseases.

D.        defensive medicine.

 

Answer:  __________

 

 

 

 

 

 

12.       A high intensity case-mix for a hospital would mean that the hospital:

 

A.        would be paid less money because its costs are higher.

B.        gets sicker patients.

C.        has a higher admission rate.

D.        accepts only those referrals from other hospitals that are high cost and/or complex cases.

 

Answer:  __________

 

 

13.       An integrated delivery system (IDS) is a complex organization. Which one of these key characteristics is NOT true of an IDS?

 

A.        Convenient delivery sites are developed in close proximity.

B.        Services are provided along a continuum of care.

C.        The organization is owned or affiliated with an HMO.

D.        Specialty managed care, rather than acute care, is emphasized.

 

Answer:  __________

 

 

14.       Total Quality Management (TQM):

 

A.        although developed for the health care industry, is now widely used in many industries, including the automotive industry.

B.        is most applicable to open-panel HMOs.

C.        focuses on improving standards.

D.        uses very simple and basic techniques that any MCO should be able to accomplish.

 

Answer:  __________

 

 

15.       Which of these is NOT associated with the federal government?

 

A.        HIPAA

B.        NAIC

C.        COBRA

D.        CHAMPUS

E.         ERISA

 

Answer:  __________

 

 

 

 

16.       Management strategies regarding desired relationships with labor organizations should complement planning as part of:

 

A.        the business plan.

B.        a non-union policy plan.

C.        overall policy development.

D.        the organization's mission statement.

 

Answer:  __________

 

 

17.       Health care training would commonly include:

 

A.        bilingual classes.

B.        nutrition classes for employees.

C.        patient safety.

D.        review of the health care organization's corporate filings.

 

Answer:  __________

 

 

18.       Hospitals and other health care organizations are credentialed by:

 

A.        ACHCE

B.        Department of Human Services

C.        JCAHO

D.        Better Business Bureau

E.         American Hospital Association

 

Answer:  __________

 

 

19.       The components of a JCAHO acceptable performance appraisal system include all of the following characteristics EXCEPT:

 

A.        job descriptions identifying duties and required competencies.

B.        a performance appraisal process and supporting documents.

C.        bulletins on new regulations pertinent to health care organizations.

D.        competency assessment checklists.

 

Answer:  __________

 

 

 

 

 

20.       Health care HR managers are NOT responsible for:

 

A.        recruiting.

B.        employee relations.

C.        compensation and benefits.

D.        employee counseling.

 

Answer:  __________