Deck 7: Corporate Structure and Legal Issues

Question 1

___________ is derived from statutes

A) Express corporate authority
B) Implied corporate authority
C) Ultra vires acts
D) Exempt acts

Answer 1

A

Question 2

Corporate authority that is not expressed but is understood to exist is called ___________.

A) express corporate authority
B) statutory corporate authority
C) implied corporate authority
D) documented corporate authority

Answer 2

C

Question 3

Governing bodies that act beyond their scope of authority, either expressed or implied in law, have committed an ___________.

A) implied authority act
B) express act
C) ultra vires act
D) intentional act

Answer 3

C

Question 4

The 1965 benchmark case in the health care field that had a major impact on the liability of hospitals and physicians was ___________.

A) Roe v. Wade
B) Carrasco v. Bankoff
C) In re Quinlan
D) Darling v. Charleston Community Hospital

Question 5

___________ governing body members use their position on the board for their own private gain.

A) Independent contractors
B) Self-dealing
C) Autonomous
D) Ethical

Question 6

A situation in which a board member or a firm with which he or she is associated may benefit or lose from the passage of a proposed board action could be considered ___________.

A) restraint of trade
B) fee splitting
C) pocket veto
D) conflict of interest

Question 7

The doctrine of respondeat superior is analogous to ___________.

A) vicarious liability
B) res ipsa loquitur
C) independent contractor
D) captain of the ship doctrine

Question 8

The ___________ committee of the governing body is responsible for reviewing and overseeing the financial affairs of the organization.

A) bylaws
B) executive
C) finance
D) audit

Question 9

The ___________ committee is an informal committee of the governing body consisting of an equal number of representatives from the executive committees of the governing body and medical staff.

A) bylaws
B) joint conference
C) executive
D) audit

Question 10

The ___________ committee of the governing body is responsible for overseeing the preparation of capital budgets for future years, expansion programs, and acquisition of major equipment.

A) patient care
B) long-range planning
C) finance
D) executive

Question 11

The ___________ committee of the governing body reviews quality of care issues.

A) patient care
B) audit
C) infection control
D) long-range planning

Question 12

The ___________ committee of the governing body is responsible for developing corporate auditing policies and procedures.

A) long-range planning
B) patient care
C) audit
D) finance

Question 13

The ___________.committee of the governing body is delegated authority to act on behalf of the full board.

A) audit
B) finance
C) executive
D) long-range planning

Question 14

___________ is a legal doctrine holding employers liable for the wrongful acts of their employees in certain cases.

A) Res ipsa loquitur
B) Independent contractor
C) Captain of the ship
D) Respondeat superior

Question 15

The ___________ doctrine is a standard that ensures a patient's safety and well-being while at an organization's facility, under which the organization is liable if it fails to uphold the proper standard of care owed the patient.

A) independent contractor
B) respondeat superior
C) captain of the ship
D) corporate negligence

Question 16

The governing body is responsible for appointing a _________ to act as its agent in the management of the organization.

A) Chief Financial Officer
B) Chief Executive Officer
C) Chief of Staff
D) Chief Medical Officer

Question 17

The governing body has a(n) ____________ responsibility that requires it act primarily for the benefit of the corporation.

A) independent contractor
B) fiduciary
C) conflict of interest
D) agreement

Question 18

The corporation has a governing body, which is sometimes referred to as the ___________.

A) executive committee
B) board of directors
C) joint conference committee
D) none of the above

Question 19

Ultimate responsibility for the operation and management of the institution lies with the ___________.

A) Chief Executive Officer
B) Medical Board
C) Executive Committee
D) Governing Body

Question 20

Not-for-profit health care facilities are usually exempt from federal taxation under Section 501(c)(3) of the ___________.

A) Internal Revenue Code of 1986
B) Department of Tax and Finance
C) Department of Labor
D) Health Care Financing Administration

Question 21

____________ establish internal mechanisms for preventing, detecting, and reporting criminal conduct.

A) Health Insurance Portability and Accountability Act of 1996
B) Corporate Compliance Programs
C) State Incorporation Laws
D) Ethics committees

Question 22

In 2002, the ___________ was enacted as a result of the misconduct committed by executives, which resulted in massive economic losses to their employees and investors.

A) Sarbanes-Oxley Act
B) Health Insurance Portability and Accountability Act of 1996
C) Sherman Antitrust Act
D) Federal Torts Claims

Question 23

As far as a duty to care is concerned, a corporation is treated ___________.

A) using a different standard of care a person owes
B) no differently than an individual
C) with less care than a person
D) with greater care than a person

Question 24

Liability holding both the physician and hospital responsible for a patient's injuries is referred to as ___________.

A) negligent liability
B) malpractice liability
C) joint liability
D) independent contractor liability

Question 25

An organization's code that provides guidance for behavior that helps carry out the organization's mission, vision, and values is the ___________.

A) Code of Ethics
B) Code of Medical Ethics
C) State Government Code
D) State Government's Code of Behavior