Test Bank Answers Corporate Structure And Legal Issues Ch.7

Chapter 7 Corporate Structure and Legal Issues

Multiple Choice

1. ___________ is derived from statutes

a. Express corporate authority

b. Implied corporate authority

c. Ultra vires acts

d. Exempt acts

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

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

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

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

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

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

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

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

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

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

a. patient care

b. audit

c. infection control

d. long-range planning

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

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

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

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

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

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

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

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

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

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

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

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

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

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