AAPC-CPPM Certified Physician Practice Manager - Set 1 - Part 1

Correct Answer: Technical, human relations, and conceptual skills

Managerial skills fall into three basic categories: technical, human relations, and conceptual skills. The degree to which each is used depends on the level of the manager's position. Option b is incorrect because global skills are described as an additional special set for global management issues, not as one of the three basic categories. Option c is incorrect because decision-making is a five-step process rather than a skill category, and this set leaves out human relations skills. Option d is incorrect because planning, organizing, leading, and controlling are the management functions that skills support, so this list names functions rather than skill categories.

Correct Answer: their investment

In a limited partnership, limited partners are financial partners whose liability is limited to their investment. They do not participate in the firm's operations, unlike general partners, who carry unlimited liability. Option a is incorrect because each partner in a general partnership is individually liable for all debts and contracts, which is not the limited partner's position. Option c is incorrect because limited partners do not participate in the firm's operations, so operating involvement does not define the limit on their liability. Option d is incorrect because dividends are profits paid to stockholders of a corporation, not a measure of limited partner liability.

Correct Answer: Sole proprietorship

A sole proprietorship is a business established, owned, operated and often financed by one person. The owner has rights to all profits and control of the business, but also carries unlimited liability for debts. Option a is incorrect because a general partnership is an association of two or more individuals operating a business together for profit, so a single owner does not fit. Option b is incorrect because it needs one or more general partners plus limited partners whose liability is capped at their investment, which conflicts with one owner bearing all liability. Option d is incorrect because it is a legal entity chartered by a state with stockholders, directors and officers, and it offers limited liability, unlike this owner's exposure.

Correct Answer: I, II, and III

A mission statement is the document that formalizes an organization's mission, states its purpose and reason for existing, and has three parts: purpose, value and action. Tactical and operational plans should support it, so IV is false. Option a is incorrect because leaves out statement III, which is also accurate because the three parts of a company mission statement are purpose, value and action. Option c is incorrect because includes statement IV, which reverses the guidance, and omits statement I, which is accurate because the mission is formalized in a document. Option d is incorrect because relies on statement IV, yet plans and goals at tactical and operational levels should clearly support the mission statement; it also drops statement II.

Correct Answer: Controlling

Controlling consists of measuring performance, comparing performance to standards and taking necessary action to improve performance. The manager's review, comparison with standards and workflow adjustment follow these three activities. Option a is incorrect because it covers setting objectives, examining alternatives, determining needed resources and creating strategies, which happens before results exist to be measured against standards. Option b is incorrect because it concerns designing jobs, creating structure, staffing positions and allocating resources, not checking results against standards after work is done. Option d is incorrect because its activities are motivating employees, communicating, resolving conflicts and managing change, which deal with people rather than measuring results.

Correct Answer: Informational, interpersonal, and decisional roles

Managers' roles, meaning sets of behavioral expectations, fall into three basic categories: informational roles, interpersonal roles, and decisional roles. These are summarized together as the managerial roles used while carrying out the management functions. Option a is incorrect because these are the three categories of managerial skills, not roles; skills describe abilities, while roles describe behavioral expectations. Option b is incorrect because these are examples of activities a manager performs within the informational category, which makes them members of one category rather than the three categories. Option c is incorrect because planning, organizing, leading, and controlling are the management functions that roles are carried out within, so they are not the role categories.

Correct Answer: fifth

Gathering feedback on the effectiveness of the chosen plan is the fifth and final step of the decision-making process. It comes after the chosen alternative has been put into action. Option a is incorrect because the third step is selecting one or more alternatives after evaluating the strengths and weaknesses of each, which is a choice rather than a review of results. Option b is incorrect because the second step is gathering information to identify alternative solutions or actions, which happens before any plan is chosen, so no feedback exists yet. Option d is incorrect because the fourth step puts the chosen alternative into action; feedback on how well that plan worked can only be collected after this implementation.

Correct Answer: Plan what to say in advance

Guidance on interpersonal skills says that when giving feedback, a person should plan what to say in advance. The feedback itself should then be positive and specific, and the receiver should be asked about further discussion. Option b is incorrect because complimenting exceptional work is a separate people-skills practice for recognizing a group member and is not the preparation step named for feedback. Option c is incorrect because a monthly meeting is advised for collecting issues, concerns and potential problems from the group, which is a people-skills step rather than preparation for giving feedback. Option d is incorrect because reading gestures and expressions belongs to listening well, which covers what is not said, and does not describe how to prepare feedback.

Correct Answer: Situational leadership

Situational leadership means selecting a leadership style that matches the maturity and competency levels of those completing the tasks. No single style is effective all the time, so effective leaders adapt as employees grow. Option a is incorrect because describes leaders who share decision-making with group members and encourage discussion of issues and alternatives, which is one style a leader might choose, not the matching approach. Option b is incorrect because is one style that may suit newly hired employees until they understand job requirements; it is a style choice rather than the practice of adapting styles. Option c is incorrect because is a single hands-off style that shares authority with subordinates, and it can frustrate employees when expectations are unclear and feedback is missing.

Correct Answer: Building people skills

Building people skills includes learning to build alliances and establish harmony. The guidance suggests meeting monthly with the group, circulating a list of issues and concerns, and inviting input to solve small problems early. Option a is incorrect because persuasion is a separate skill in the guidance, about selling ideas and influencing others by overcoming objections, not about gathering team input on emerging concerns. Option b is incorrect because feedback is planned in advance, positive and specific, and directed to one recipient; a group session collecting concerns does not fit that description. Option d is incorrect because listening means attending to what is said and unsaid, including gestures and expressions; the monthly list and group meeting belong to a different skill.

Correct Answer: Build esprit de corps

The guidance names building esprit de corps as the first step in persuading a team. Esprit de corps is a shared enthusiasm and devotion to the group, so everyone works toward a common goal. Option b is incorrect because minimizing problems and pain for others is one way to build trust, which persuasion rests on, rather than the first step toward group commitment. Option c is incorrect because answering an objection in the form of a benefit is how a manager responds when people raise concerns about plans, not the opening step. Option d is incorrect because the guidance says to praise the team as a whole while recognizing each member's unique contributions, so singling out one person contradicts it.

Correct Answer: Production

Production is a line area, because line positions are directly involved in the processes that create goods and services. Staff positions, such as legal counseling, managerial consulting and public relations, provide advisory and support services. Option a is incorrect because it is a named staff area, where positions give specialized advisory and support services to line managers rather than producing goods and services directly. Option b is incorrect because it sits with the staff areas, providing administrative and support services that line employees need in order to reach the firm's goals. Option c is incorrect because the guidance lists it among staff areas, so positions there advise line managers instead of being directly involved in creating goods and services.

Correct Answer: Unity of command

Under the unity of command principle, everyone reports to and gets instructions from only one boss. Unclear or duplicate reporting relationships, as in matrix structures, show a lack of unity of command. Option a is incorrect because describes how many employees a manager directly supervises, which concerns the number of subordinates rather than the number of bosses an employee answers to. Option b is incorrect because is a way of grouping jobs into units, and the scenario describes unclear reporting relationships, not how work is grouped. Option d is incorrect because means a manager assigns some authority and responsibility to people below in the chain of command; it does not address duplicate reporting lines.

Correct Answer: Informal organization

The informal organization is the network of connections and channels of communication based on informal relationships among individuals. Work-related ties such as carpooling do not appear on the organization chart but still shape communication and performance. Option b is incorrect because a matrix structure combines functional and product departmentalization by bringing people from different functional areas together on a special project, so it is a designed structure, not social ties. Option c is incorrect because cohesiveness is the degree to which members want to stay in a group and resist outside influences; it measures attachment, not a network of communication channels. Option d is incorrect because formal groups are designated and sanctioned by the organization and aimed at organizational goals, whereas carpool relationships arise from personal connections the organization did not create.

Correct Answer: Matrix structure

The matrix structure, also called the project management approach, brings people from different functional areas together on a special project. Each employee has two direct supervisors: the functional line manager and the project manager. Option a is incorrect because it is the network of connections based on personal relationships that does not appear on the organization chart, so it is not a formal reporting design. Option b is incorrect because reengineering means the complete redesign of business structures and processes to improve operations, not a pairing of functional and project supervisors. Option c is incorrect because it is a design option enabled by new technology, not a structure where employees answer to both a line manager and a project manager.

Correct Answer: Identify workflow dependencies and test with PDSA

Workflows often overlap or depend on other processes, so dependencies must be identified when redesigning. The Model for Improvement and PDSA help a practice find unanticipated effects and correct them before taking changes to scale. Option b is incorrect because the perceived process records what the group believes is happening; it does not reveal how a redesign affects overlapping workflows or test the change. Option c is incorrect because guidance calls for all key players, especially frontline staff who carry out the workflow, to take part, not a single department deciding alone. Option d is incorrect because realigning roles and job descriptions follows from the redesigned workflow; fixing them first would skip the test that exposes unanticipated effects.

Correct Answer: Swimlane workflow map

Swimlane mapping is chosen when a single process involves more than two roles simultaneously across time. The traditional detailed workflow map instead identifies every step of the activity and who performs it. Option a is incorrect because it records what the group believes is happening in the current process, not a format built to display several roles across time. Option b is incorrect because it shows the workflow the improvement group aspires to implement, which describes a purpose of the map rather than a layout for multiple roles. Option c is incorrect because it is obtained when group members validate the perceived map through direct observation, so it concerns accuracy of content rather than a role-based format.

Correct Answer: I, II, and III

Gantt charts are bar graphs on a time line showing scheduled versus actual time per activity, and they suit projects with few tasks. They fail to show task relationships, which is why the critical path method and PERT are used. Option a is incorrect because leaves out statement III, which is also accurate, since these charts are most helpful when only a few tasks are involved. Option c is incorrect because includes statement IV, yet a recognized shortcoming of these charts is that they fail to show how tasks are related, and it omits I. Option d is incorrect because relies on the task-relationship claim in IV, which is not a feature of these charts, and drops II, which is accurate.

Correct Answer: Operations management

Production turns inputs such as natural resources, raw materials, human resources and capital into outputs, which are products and services. Managing this conversion process is the role of operations management. Option a is incorrect because it is a production type that adds unique features to standardized products, not the management role that oversees the conversion process. Option b is incorrect because it covers choices such as process type, location, facility design and resource management, rather than being the role that manages conversion itself. Option c is incorrect because it is one of two tasks used to control production efficiency, not the broad role of managing the whole conversion of inputs.

Correct Answer: Secretary of Health and Human Services

The HITECH aging services technology provision directs the Secretary of Health and Human Services to submit a report on the study to the appropriate committees of jurisdiction of the House of Representatives and the Senate. Option a is incorrect because this official appears in the research centers provision as someone the NIST Director consults, not as the party submitting the aging services technology report. Option c is incorrect because this director's described duties are testing standards and implementation specifications and supporting a conformance testing infrastructure, which is a testing function rather than the reporting duty. Option d is incorrect because this committee is named as the body NIST coordinates with on developing standards, while the report requirement assigns submission to a different official.