Which One of the Following Statements Is True About the Organization

question 57

Multiple Choice

Which one of the following statements is True about the organization of community hospital governing boards?

• A) The membership is composed of employees who are empowered to conduct business on behalf of other employees.
• B) Members are salaried individuals who have a legal responsibility for the quality of care.
• C) The membership is composed of a diverse group, each of whom has a skill that is of value to the function of the board.
• D) The membership is composed largely of individuals who have a medical background.

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Definitions:

Mutual Ownership

A form of ownership where an institution, such as a mutual insurance company or building society, is owned by its members or policyholders.

Direct Control

The ability of an entity to influence the operations and financial decisions of another entity directly, often through ownership of voting shares.

Indirect Control

The ability to influence or dictate the actions of another company or entity, not through direct ownership, but through other means such as contractual agreements or through a third party.

Income Tax Expense

The cost incurred by businesses or individuals due to income taxes, reflecting the portion of earnings allocated to meet tax obligations.