Practice Made Perfect Flashcards
What are the steps of the management process?
Planning, organization, directing, evaluating
What are the three types of planning that occur in a business?
Strategic, tactical, operational
Define: strategic planning
Long term planning (3-5 years)
Define: tactical planning
Planning for the near future (1-3 years)
Define: operational planning
Immediate future planning (weeks)
What are the four attributes that mark the progress of a business’s success strategy?
Financial success
Ability of staff to work as a team
Motivation and contentment among employees
Client satisfaction
What are the four major areas of vet practice management?
Personnel and Human Resources, operations and maintenance, finance and economics, marketing and client relations
What are the six behavioral abilities a manager must have?
Command respect
Delegate
Follow through
Self Motivated
Control emotions
Communication skills
Pertaining to external pressures, what the forces identified in Porter’s five-force analysis?
New players to the industry
Threat of substitutes
Client buying power
Rivalry among established practices
Supplier power
What does PEST stand for in a PEST analysis?
Political, economic, sociocultural, and technological
What are the two areas of the value chain analysis?
Primary operating activities - those that ate directly client/patient facing
Support activities - behind the scenes activities
What are the four perspectives relevant to the Veterinary Practice Scorecard?
Patient care
Client
Learning and growth
Financial
What are the four basic leadership styles? Define each of them.
Directive - task oriented
Supportive - individual needs
Participative - consulting group in decision making
Achievement oriented - goal setting
Define theory X and theory Y in regards to people management?
X assumes people prefer direction and are motivated by money
Y assumes people can self-direct and are motivated by pride in work
What are the five levels of competence in regards to EQ?
Self awareness
Self control
Self motivation
Empathy
Effective management of relationships
Define: behavior typing instruments
Methodologies of characterizing a persons behavior
What are the DISC categories and how do you differentiate them?
D - dominate - have control over environments, results oriented, tend to think environment is hostile
I - influential - have control over environment, people oriented, tend to think environment is friendly
S - steadiness - submissive to environment, people oriented, tend to think the environment is friendly
C - conscientious - submissive to environment, results oriented, tend to think the environment is hostile
Define: the platinum rule
Communicating with others the way they were prefer to be communicated with rather than as you would prefer
More affective than “the golden rule”
What are the communication behavior dynamics of the DISC styles?
D - assertive, low feelings
I - assertive, high feelings
S - reserved, high feelings
C - reserved, low feelings
What is the difference between passive, assertive, and aggressive?
Passive - put rights of others above your own
Assertive - stand up for your own rights while maintaining respect for the rights of others
Aggressive - stand up for your own rights while violating the rights of others
What are the two key ingredients in a complete plan for staff acquisition?
Budget
Job description
what documents must you collect from a new hire when they start?
W4, I9, state income tax witholding forms, medical and retirement forms, copies of credentials, contact info
what are the three types of employee performance evaluations?
formal performance reviews, coaching conversations, corrective-action discussions
What is a good rule of thumb when evaluating if an employee’s poor behavior is a possible pattern?
Rule of three
Offense #1: take note
Offense #2: take note as possible pattern and plan for discussion
Offense #3: discuss with employee
What is the ABCDEF formula for corrective action discussions?
Awareness
Behavioral expectations
Consequences
Decision confirmed
Employee involvement
Follow up
What law prohibits termination based on race, sex, color, creed, or origin?
Civil rights act
What law prohibits termination based on age if over 40 years old?
Age discrimination in employment act
What law prohibits termination based on pregnancy?
Pregnancy discrimination act
What law prohibits termination based on employee refusing to work in a place they consider unsafe?
Occupational safety and health act
What law prohibits termination based on employee filing for bankruptcy?
Bankruptcy reform act
What law requires employers to keep detailed payroll and benefits data?
Internal revenue code and fair labor standards act
What law requires all employers to verify that new hires are a US citizen or are authorized to work in the US?
Immigration reform and control act of 1986
Which law sets basic minimum wage and overtime pay standards and record keeping requirements and regulated the employment of minors?
Fair labor standards act (1938)
What two ways can the FLSA apply to employees?
Enterprise coverage
Individual coverage
In regards to the FLSA, when does enterprise coverage apply?
Business is engaged in interstate commerce, has at least two employees, and has annual sales of at least $500k
Define: hours “suffered” or permitted
Hours employee works outside what the employer has requested
Define: waiting time
Hours worked when employee cannot use the time for their own purposes and the time is controlled by the employer
Define: on call time
Time when employee must stay available and cannot use the time for their own purposes
Does not count as hours worked if employee is required to be reachable if needed
When does an employer have to pay for sleep time vs not?
Pay if employee is scheduled for less than 24 hours and is allowed to sleep/do personal activities during that time
Don’t pay if scheduled for more than 24 hours
When can uniform costs not be imposed on the employee?
If their purchasing of a uniform would decrease their hourly wage to less than minimum wage
What qualifies an employee as being exempt?
Salary of $455 or more a week
Paychecks released weekly or less frequently
Job duties include executive, administrative, or professional duties
Aside from salaried exempt employees, what other exemptions exist for the FLSA?
Full time students, student learners, and disabled workers
Who is the FLSA enforced by?
The wage and hour division of the US department of labor
Employee or 1099: the practice controls the person’s work performance
Employee
Employee or 1099: investments in supplies and equipment are done by the individual
1099
Employee or 1099: opportunity for loss or profit falls on the practice
Employee
Employee or 1099: long term relationship
Employee
The most important factor under the common law test is…
The employer’s control of the individual
What are the three categories determined by the IRS that establish if individual is employee or 1099?
Behavioral control
Financial control
Relationship of the parties
What statutory safe harbor can allow an employer relief from federal employment tax obligations for an individual?
Section 530
If an employee is incorrectly categorized as a 1099, who is responsible for the backtaxes and other fees if an IRS audit were to occur?
The employer
Under Title VII of which law is it illegal to discriminate against someone for their race, color, religion, sex, or national origin?
Civil rights act of 1964
What organization enforces the civil rights act of 1964?
Equal employment opportunity commission
What size business does the equal employment opportunity commission regulate?
15+ employees
T/F: businesses with less than 15 employees are not subject to the civil rights act of 1964
False
T/F: former employees can sue their former employers under the civil rights act
True
What are the three types of sex discrimination per the civil rights act?
Typical gender based
Pregnancy
Sexual harassment
What are the two types of sexual harassment and what do they mean?
Quid pro quo - when unwelcome sexual conduct is used as basis of employment decisions
Hostile environment - unwelcome sexual conduct that affects job performance or affects hostile work environment
What requirements must be met in order for an allegation to be considered sexual harassment?
The conduct must create a hostile or abusive work environment
The victim must perceive the environment to be abusive
What law makes it clear that discrimination on the basis of pregnancy, childbirth, or related medical conditions is unlawful sex discrimination under the civil rights act?
Pregnancy discrimination act if 1978
Can an employer take fetal welfare into account when deciding whether to permit a pregnancy employee to remain on the job?
No but they should advice the employee of any hazards that could affect their pregnancy
What law prohibits employment discrimination against persons with disabilities?
Americans with disabilities act (1990)
What size business does the ADA apply to? Which employees count?
15+ employees
Employees count if they are on payroll for 20+ weeks a year
What law prohibits discrimination because of age?
Age discrimination in employment act (1967)
The ADEA prohibits employers with ___ or more employees from discrimination against people ___ or older on the basis of their age
20
40
How many employees must a business have for the FMLA to apply?
50+
What qualifies an employee for FMLA?
Must have worked 1250+ hours in previous 12 months
Reason for leave:
• childbirth
• adoption
• care for immediate family member
• serious health condition
OR
• care for service member
What organization requires all employers to furnish a place of employment free from recognized hazards that are likely to cause death or serious injury?
Occupational safety and health administration (OSHA)
What act provides funds that the states can use to administer unemployment benefits?
Federal unemployment tax act
What law provides safeguards for employee interests in any employee sponsored benefit plans?
Employee retirement income security act (1974)
What are the three major sections of the ERISA?
Title I - various participation rules
Title II - amendments to Internal Revenue Code enforced by IRS
Title IV - pension plan benefit insurance program
Title IV benefits of the ERISA is administered through what?
Pension benefit guaranty corporation
What law allows temporary coverage extensions of health insurance benefits?
Consolidated omnibus budget reconciliation act of 1986 (COBRA)
What is the maximum amount of time an employee could get COBRA benefits?
18 months
What protects employees health insurance coverage when they change jobs?
Health insurance portability and accountability act
What law requires employers with more than 15 employees to provide group health insurance benefits or pay a penalty?
Patient protection and affordable care act (2010)
What is the penalty under the patient protection and affordable care act?
$2000 per employee per year
What law states the same benefits must be applied within an insurance plan for mental health as with medical/surgical health?
Mental health parity act
What law prohibits private sector employers from having an employee or prospective employee submit to a lie detector test?
Employee polygraph protection act (1988)
Per the EPPA, what kinds of companies can perform lie detector tests?
Security and drug manufacturers
what is the primary use for medical records?
patient care
What is the secondary purpose for medical records?
Evaluation of the medical care provided by the hospital
What are the six areas of AAHA’s path to high quality care?
Heartworm testing and prevention
Dentals
Diets
Senior screenings
Core vaccines
Preanesthetic testing
Term for: when symptoms indicate many possible causes but a diagnosis hasn’t been established
Differential diagnoses
Term for: when an exact diagnosis is made
Definitive diagnosis
Define: source oriented medical records
Record is sorted by source of info and then chronologically
What type of medical record is organized by a chronological list of problems?
Problem oriented medical record
What two governing bodies regulate adverse reactions?
FDA and EPA
What are the four objectives of an inventory system?
Control inventory
Forecast inventory
Purchasing
Selling
Term for: profit based management system that prioritizes inventory based on value and importance
Selective inventory control
Formula for average inventory on hand =
Beginning inventory + ending inventory / 2
Formula for inventory turnover ratio =
Total purchases during the year / average inventory on hand
Formula for average shelf life of inventory in days =
365 / annual inventory turnover ratio
Define: economic order quantity
Optimum order quantity, determined by the point at which Inventory ordering and holding cost are minimized
Formula for: EOQ
Sqrt(2AF/HUc)
A = annual demand in units
F = fixed ordering costs incurred per order
H = holding costs on annual basis as percent of unit cost
Uc = unit cost
Define: FOB shipping point vs FOB destination
FOB shipping point = title of inventory passes to practice at shipping dock
FOB destination = title passes when delivered to practice
Define: markup vs margin pricing methods
Markup = multiple by a factor
Margin = add flat amount
Formula for: sales price
SP = FC + VC + P
FC - fixed costs
VC - variable costs
P - profit
Formula for: breakeven point
= FC + VC
FC - fixed costs
VC - variable costs
Formula for: holding costs
= purchase price x 15-30%
define: one-write systems
manual invoicing system that uses carbon copy paper to give one copy to the client and the other is transferred to the practice’s summary journal of sales
Define: imprest
Cash kept in drawer at all times
Define: imprest
Cash kept in drawer at all times
Term for: all measures used by a business to ensure against errors, waste, and fraud; to assure the reliability of accounting data; and to promote compliance with all company policies
Internal controls
The ___ demands stringent reporting before stock in a corporation can be publicly traded on a stock exchange.
Security and exchange commission
What IRS publication serves as an information publication regarding state and local payroll tax laws?
Circular E
What IRS form is the Employer’s Annual Federal Unemployment Tax Return?
Form 940
What IRS form is the Employer’s quarterly Federal Tax Return?
Form 941
What is the difference between a bookkeeper and accountant?
Bookkeeper inputs data, accountant interprets data
Term for: clauses in a loan
Loan covenants
What are the two methods a bookkeeper can use to establish a budget?
Top-down or bottom-up
Define: top down budgeting approach
Desired gross income is projected
Define: bottom up budget approach
Desired profitability is use to set the rest of the budget
Name two major National payroll services
ADP and paychex
What are the three levels of financial reports an account can run from least to most detailed?
Compilation, review, audit
Define: assurance service
CPA attests to the reasonableness and accuracy of financial statements
Includes reviews and audits
What three kinds of tax professionals can represent a hospital if being audited by the IRS?
CPA, attorney, enrolled agent
Term for: organized listing of all income, expense, asset, liability, and equity categories
Chart of accounts
Where are the monetary records of properties and services purchased by a hospital maintained?
Cost principle
Define: International Financial Reporting Standards
IFRS
set of accounting standards developed by the International Accounting Standards Board
Term for: financial claims to properties or assets
Equities
What are the four types of financial statements used by businesses?
Balance sheet
Income statement
Cash flow statement
Statement of stockholder’s equity
Which is more common: cash basis or accrual basis accounting?
Cash
What is a benefit of cash based accounting?
Income is deferred and expenses are realized immediately, so net profit is lower = less taxes
How can you get the best of both worlds between cash and accrual accounting?
Use cash basis for tax purposes and accrual basis for managerial purposes
What are the stages of grief?
Denial
Anger
Bargaining
Depression
Acceptance
Term for: competitively promoting a product or service, typically through paid, public announcements by a business directed to clientele
Advertising
Term for: all activities engaged in to build a brand and create awareness of services or goods
Marketing
What are the four P’s of marketing?
Product
Place
Price
Promotion
Compare indirect and direct marketing
Indirect = the image you put off
Direct = the promotion of products/services
Compare internal and external marketing:
Internal = to existing clients
External = to new clients
Term for: identifiable activities that provide buyer satisfaction
Services
Term for: identification of a specific target group by specific characteristics
Segmentation
Term for: an effort to direct promotional efforts toward one or more identifiable segments
Target marketing
Term for: the total audience addressed by the message
Reach
Term for the average number of times that the targeted audience is exposed to the message in a given period of time
Frequency
Term for the use of consumer direct channels to reach and deliver goods and services to customers without using marketing middlemen, involves sending an offer announcement reminder or other item to a person
Direct response marketing
What is an example of direct response marketing?
Snail mail, patient care reminders
What are the three R’s of client retention?
Recall, reappointment, reminder
What is the major objective of branding?
Differentiate from other practices
Term for any activity initiated that is designed to create a positive image walk, communicating with present and potential clients
Public relations
