An Emergency Department (ED) Manager Interviews and Hires a Candidate

question 17

Multiple Choice

An emergency department (ED) manager interviews and hires a candidate who reports having several years of ED experience. Soon after hire, the nurse makes a series of errors and harms several clients. When investigating these errors, the nurse manager discovers the nurse falsified his experience and credentials. Is the hospital liable for this nurse's actions?

• A) Yes, the hospital could be liable for negligent hiring if credentials were not checked.
• B) Yes, the hospital could be liable but only if it did not properly train the nurse.
• C) No, the nurse is liable because information about experience was falsified in the interview.
• D) Yes, the hospital is liable for all errors committed by nursing staff.

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Definitions:

Cost of Equity

The return that shareholders require for investing in a company’s equity.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets by dividing net income by total assets.

Return on Debt

A measure of how much profit a company generates for every dollar of debt, indicating the efficiency of using borrowed funds.

Total Equity

The net value of a company, determined by subtracting total liabilities from total assets.