Question 1

___________ is derived from statutes

Accepted Answer

Express corporate authority is derived from statutes as it refers to the powers explicitly granted to a corporation by law or its charter.

Question 2

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

Accepted Answer

Implied corporate authority refers to powers not explicitly stated but are assumed to be necessary to fulfill the corporation's objectives.

Question 3

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

Accepted Answer

An "ultra vires act" refers to actions taken by a governing body or corporation that are beyond the scope of its legal power or authority.

Question 4

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

Accepted Answer

Darling v. Charleston Community Hospital was a landmark case in 1965 that established the principle of hospital liability for the negligence of its staff, significantly impacting the legal responsibilities of hospitals and physicians.

Question 5

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

Accepted Answer

Self-dealing refers to a situation where governing body members use their position for personal gain, which is unethical.

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 ___________.

Accepted Answer

A conflict of interest occurs when a board member or an associated firm stands to benefit or lose from a board decision, potentially compromising their impartiality.

Question 7

The doctrine of respondeat superior is analogous to ___________.

Accepted Answer

The doctrine of respondeat superior is analogous to vicarious liability, as it holds an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur in the course of their employment or agency.

Question 8

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

Accepted Answer

The finance committee is typically responsible for reviewing and overseeing the financial affairs of an organization.

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.

Accepted Answer

The joint conference committee is an informal committee that includes equal representation from both the governing body's executive committees and the medical staff.

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.

Accepted Answer

The long-range planning committee is typically responsible for overseeing the preparation of capital budgets, expansion programs, and acquisition of major equipment, as these tasks involve planning for the future.

Question 11

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

Accepted Answer

The patient care committee is typically responsible for reviewing and addressing quality of care issues within a healthcare organization.

Question 12

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

Accepted Answer

The audit committee is responsible for overseeing the development of corporate auditing policies and procedures.

Question 13

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

Accepted Answer

The executive committee is typically delegated authority to act on behalf of the full board, especially in urgent situations or when the full board cannot meet.

Question 14

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

Accepted Answer

Respondeat superior is the legal doctrine that holds employers liable for the wrongful acts of their employees when such acts occur in the course of employment.

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.

Accepted Answer

The corporate negligence doctrine holds an organization liable for failing to ensure a proper standard of care for patients, focusing on the organization's responsibility for patient safety and well-being.

Question 16

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

Accepted Answer

The Chief Executive Officer (CEO) is typically appointed by the governing body to act as its agent in the management of the organization.

Question 17

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

Accepted Answer

A fiduciary responsibility requires the governing body to act in the best interest of the corporation, prioritizing its benefit above all else.

Question 18

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

Accepted Answer

The governing body of a corporation is typically referred to as the board of directors.

Question 19

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

Accepted Answer

The Governing Body holds the ultimate responsibility for the operation and management of an institution, overseeing its overall direction and ensuring it meets its objectives.

Question 20

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

Accepted Answer

Not-for-profit health care facilities are usually exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code of 1986.

Quiz 7: Corporate Structure and Legal Issues