Quiz Questions Flashcards
What is a bailment?
A Bailment is defined as a delivery of something of a personal nature by one party to another to be held according to the purpose or the object of the delivery and to be returned or delivered over when the purpose is accomplished. Whenever a veterinarian assumes custody of a client’s animal, a bailment takes place. A written boarding agreement is an example of a written bailment.
What 2 elements are essential for the creation of a bailment?
1 – There must be physical delivery of the property from the Bailor to the Bailee.
2 – There must be a knowing acceptance of possession of the property by the Bailee.
Which of the elements below are NOT considered a forgotten cost of doing business?
Staff turn-over
Pharmacy
Continuing Education
Credit card merchant fees
Pharmacy
Very often the complexity of the legal system and the sluggish progression of cases (among other things) will discourage people from using the judicial system. There are three alternatives to a lawsuit to settle a dispute. What are they and briefly define each one?
Negotiation- with or without legal counsel
Mediation- uses neutral intermediary; not required to accept either sides offer
Arbitration- similar to mediation but findings of neutral party are generally binding
When it comes to medical errors and the silencing of those errors, the AVMA and PLIT developed a model to facilitate discussions of full disclosure. The model is designed around the acronym TEAM. What does TEAM stand for?
Truth – Teamwork – Transparency
Empathy
Apology – Accountability
Management
I am sure we all agree that performing a necropsy without the owner’s consent is unethical but it is also a high risk liability. The risks of liability center on causes of action. Define those two causes of action.
1 – The tort of outrageous conduct.
2 – The right not to have one’s sensibilities shocked.
What is common sizing
financial statement showing categories as a percentage of a specific number (gross profit for example)
These represent the determination of financial statement entry relationships and the fractional structure that results provides a concise reference to performance. They are generally used to assess aspects of profitability, solvency, and liquidity.
Ratios
In regards to practice owner/s compensation, what are the five tiers?
Veterinary salaries
Management salaries
Perquisite income (perks)
Profits reflected as return on owners investment
Equitable distribution of remaining profits among owners
In regards to changing organizational culture; there are five key steps in making a culture change within a practice. What are those five steps, and of those five steps, which step states (among other things) that “The bottom line is that if a leader wants to create a different culture within the hospital, the leader has to go first”?
Define the culture
Align behaviors with the desired culture
Commit to the change (says that the leader has to go first)
Support the shift
Grow the team
The difference between the cost of a product and the revenue it generates is called what?
Gross profit margin
If your end of year revenue for the practice was $2,400,000 and your profit was $312,000 what is your Net Profit Margin percent?
13%
Which expenses are considered more controllable, Direct Expense or Indirect Expense?
Direct
An organization’s debts or other obligations which must be discharged within a short time (usually within the earnings cycle, or one year) are called what?
current liabilities
If the practice currently has $94,250 of cash on hand and the annual operating expenses of the practice are $1,677,000, how many days cash balance do you have and is that a healthy number for the practice?
14.6 days
use formula: total expense for year / 260 (business days)= ave daily expense.
Inventory turnover calculation
(BI+EI)/2=Average Inventory
Total purchase for the year = DMSP
DMSP/AI=Turnover ratio
In general, the ____________ the turn-over ratio for a given period of time, the tighter the inventory control.
higher
Average Shelf Life of Inventory Calculation
Total days in period/IT= ASL
Maximizing inventory turnover is a key strategy in creating an efficient and profitable inventory system. Name 4 ways to increase your inventory turnover.
Order qtys that make sense
Product consolidation
Measure and increase compliance
Doctor and staff product education
What is the Sherman Antitrust Act
Guarantee the freedom to compete
Who is responsible for the interpretation and application of the competitive objectives of the anti trust laws?
Courts
Department of Justice
Federal Trade Commission
What are the 2 rules courts use when ruling regarding antitrust laws?
Per Se Rule- price fixing, bid-rigging, horizontal customer allocation, and territorial allocation agreements.
Rule of Reason- business practice is illegal if it unreasonably restricts trade (think apple store)
Negligence is defined as
the doing of some act that a person of ordinary prudence would not have done under the same or similar circumstances or the failure to do what a person of ordinary prudence would have done under the same or similar circumstances.
The law of negligence requires proof of 4 essential elements, what are they?
1- establish that defendant had a duty to prevent an injury
2- Establish that defendant violated that duty by failing to act in accordance with the standard of care
3-Show that a reasonably close causal connection existed between the defedant DVM conduct/lack of and the resulting in injury
4- proving actual damage or harm to the interests of another person
