Answer to Question 1
C
A transactional leader focuses on operations and short-term goals. A transformational leader inspires
and motivates others to excel and participate in a vision that goes beyond self-interests. A charismatic
leader displays self-confidence and strength in convictions and communicates high expectations. An
autocratic leader makes decisions and uses power to command and control others.
Answer to Question 2
B
Variable costs fluctuate depending on the volume, or census, and types of care required. Medical and
surgical supplies, drugs, laundry, and food costs often increase with the volume. Fixed costs are those
expenses that are constant and not related to productivity or volume. Direct expenses are those
expenses that can be directly associated with patient care. Indirect expenses are expenses not directly
related to patient care.