Final Flashcards
What is the main disadvantage of a sole proprietorship?
Unlimited exposure to personal liability
T/F: In a general partnership there is unlimited liability for all owners.
True
Which type of corporation leads to double taxation?
C corporation
What is the most commonly used business entity for a dental office?
Limited liability company
T/F: As an independent contractor, you would receive a W2 from your employer.
False
What is an “at-will” employee?
No promised term of employment. Typically used for staff but not dentist.
What is a typical termination notice?
45-60 days
No less than 30
T/F: Restrictive covenants are not enforced in the state of Ohio.
False
Non-compete, non-solicitation, non-disclosure
What is “cash basis” accounting?
Income reported based on collections not production
What is the equation for an income statement?
Total revenue - total expenses = net profit
T/F: Labor wages, lab fees, and supplies are fixed expenses.
False
Variable expenses change depending on the amount of business
___________ tells you the financial status of your business at a particular point in time.
Balance sheet
T/F: Cash flow reveals financial condition.
False
Does not take into account assets other than cash
What is a SWOT analysis?
Strengths, weaknesses, opportunities, threats
What is a good baseline of production right out of school? With more experience?
$250/hr
$750/hr
What should the typical dentist:hygiene production ratio look like?
70(dentist)/30(hygiene)
In general, hygienists should produce _______ times their salary.
2.5-3
Exam fee is not included in hygiene production
What is the average overhead of a typical office?
60-65% of gross revenue
Payroll - 25-28% Payroll taxes/benefits - 3-5% Supplies - 5-7% Lab expenses - 6-9% Facility - 6-8% Marketing - 3-5% Misc. - 5-7%