Quizzes and Polls

Question 1

Which of the following is a lawful question to ask an interview candidate?
A. Do you have an arrest record?
B. How long have you been a resident of this state?
C. What is your date of birth?
D. Do you wish to be addressed as Miss? Mrs.? Ms.?

Answer 1

Correct Answer: B.
Explanation: Practice Made Perfect, page 49-50. You can ask about actual convictions, but not arrests in general, as an arrest does not constitute guilt. You can ask if a candidate is 18 years of age or older, and if not, you can ask if they have a work permit; but you cannot ask date of birth. Marital status is not acceptable in any format.

Question 2

A manager’s plan for conflict resolution includes

a. Confronting the behavior, which is best done in a public forum so the issue, is open for discussion.
b. Talking it out, when everyone who has an opinion on the subject can offer their perspective.
c. Holding employees accountable for a solution, by giving them one or two days to discuss a resolution then report back to the manager.
d. Following up and feedback, by having daily meetings with the conflicting parties to see how their solution is holding up under daily pressures.

Answer 2

Correct Answer: C.
Explanation: The 5-Minute Veterinary Practice Management Consult, page 263. Confronting the behavior should take place behind closed doors in the manager’s office, and only the two employees involved should be discussing the issue. If the issue involves entire areas of the practice, the supervisors of those respectiv0e areas should be at this meeting. Follow up with weekly meetings, not daily, to monitor progress.

Question 3

In regards to safety training for employees
A. OSHA does not mandate that employee training be documented.
B. OSHA sets a specific time frame when training must take place.
C. Statistics show that veteran staff members have the same risk of injury as new employees.
D. OSHA standards have adopted a performance-oriented attitude toward training.

Answer 3

Correct Answer: D.
Explanation: Regulatory Compliance Manual, page 18-19. OSHA training does indeed need to be documented. There is no specific time frame when training must occur, but it is required that the employee be trained before they are exposed to the danger or as soon as the hazard becomes known to the business. New staff members are at a higher risk of injury on the job

Question 4

Which of the following is true of general interest staff meetings?
A. Meeting minutes should be distributed to all employees including those who attended.
B. Providing food and drink will make the meeting more efficient.
C. On-duty employees should not be paid for the time spent at the meeting.
D. Employees cannot be disciplined for missing a mandatory meeting.

Answer 4

Correct Answer: A.
Explanation: Practice Made Perfect, pages 29-30. Providing food and drink may increase attendance, but it will prolong the meeting and make it less effective as employees will not be paying full attention to the meeting. All employees should be paid for their time at the meeting, whether they are on duty or not. If the practice has an outlined policy on meeting attendance and punctuality that explains possible disciplinary actions, an employee can be disciplined for being absent or late.

Question 5

Performance Evaluations
A. Should not be given more than once a year.
B. Can be handed to the employee to review before the actual meeting takes place.
C. Do not need to be signed by the employee once the evaluation is complete if the employee does not agree with the outcome.
D. Are not necessary at the end of the initial 90-day training period if the employee is doing well.

Answer 5

Correct Answer: B.
Explanation: Practice Made Perfect, pages 58-60. Evaluations should be given at the end of the introductory period for new hires regardless of their performance, and at least annually thereafter; however more frequent evaluations allow for more open communication. The evaluation form should be signed and dated by the employee and employer, even if the employee does not agree with the outcome. The employee is documenting that they received the evaluation, not that they necessarily agree with what is written.

Question 6

When an employee is facing termination of employment
A. There is no reason to worry about wrongful discharge claims if you are at at-will employer.
B. It is advisable to include a witness that is the same gender as the manager.
C. Ask for the employee to sign a release foregoing his/her right to sue over the dismissal.
D. If it is suspected that litigation could result from the termination, call the practice’s attorney immediately after the employee has been dismissed from employment.

Answer 6

Correct Answer: C.
Explanation: Practice Made Perfect, pages 65-67. There are many forces that have significantly reduced the scope of the definition of “at-will employment”, and this status does not protect an employer from claims of wrongful discharge. When involving a witness in the meeting, it is advised that the witness be the same gender as the employee, not the manager. Regardless of whether or not the practice of having the employee sign a release is popular or common, it is recommended in the text. If necessary, contact the practice’s attorney to discuss the situation before the employee is terminated.

Question 7

In regards to managing employee benefits
A. It is not necessary to take the employees’ benefit preferences into consideration.
B. It is important to consider the benefits offered by non-veterinary businesses in the area that compete with the practice for employees.
C. Since all practices are different, it is not important to know which benefit plans are routinely offered in the profession.
D. When the economy is not robust, benefits are one of the first expenses that should be cut or reduced.

Answer 7

Correct Answer: B.
Explanation: The 5-Minute Veterinary Practice Management Consult, page 230. Employees should be involved in expressing their preferences for the benefits offered by the practice. Benefits offered by both non-veterinary businesses and veterinary practices in the area should be considered. The short-term gain of reducing or cutting benefits during tough economic periods will be offset by increased staff turnover and the resulting decline in quality patient and client care.

Question 8

Manuals that contain employee Policies, Procedures, and Guidelines
A. Should be followed by practice management or a breach of contract could be considered.
B. Are legal as long as they have been created using a common resource or tool available.
C. Should be given to new employees and only the manager needs to document this transaction.
D. Can only be updated by practice management once a year.

Answer 8

Correct Answer: A.
Explanation: Practice Made Perfect, page 33. This policy manual is considered a legal document, and should be reviewed by the practice’s attorney regardless of the tool used to create the manual to ensure that the statements are in compliance with federal and state laws and regulations. New employees should sign a statement of receipt. This manual should be updated as often as necessary.

Question 9

Staff Scheduling involves
A. The use of a handwritten schedule for larger practices that have many employees to consider.
B. The need for flexibility, which is better for both staff morale and the supervisor’s work load.
C. A shift differential or financial incentive for unpopular overnight or weekend shift.
D. Monitoring presenteeism, which is when the best employees put in the most productive hours.

Answer 9

Correct Answer: C.
Explanation: The 5-Minute Veterinary Practice Management Consult, pages 266-267. Handwritten schedules are obsolete for practices with more than two employees. A schedule that is highly flexible is a benefit for the staff, but can significantly increase the workload for the supervisor who must maintain the schedule; therefore a balance should be achieved.
Presenteeism has two known definitions: 1) employees who work a large number of hours per week typically to avoid their personal lives, and are therefore nonproductive in relation to the number of hours they work;
2) employees who refuse to take sick or personal time off, and choose to come in to work ill which can reduce the combined productivity of the entire staff.

Question 10

Job descriptions
A. Are not advised for every position in the hospital.
B. Should contain a disclaimer to provide flexibility.
C. Are only updated once a year.
D. Are required by the Americans with Disabilities Act.

Answer 10

Correct Answer: B.
Explanation: Practice Made Perfect, pages 40-42. Job Descriptions should exist for every major job function within the practice. They should be reviewed and updated as often as necessary to reflect actual job requirements. Although job descriptions are not required by the Americans with Disabilities Act (ADA), a practice that is using these documents can demonstrate that they are defining the essential duties of the position for prospective candidates and current employees.

Question 11

The process of hiring a new employee involves three basic steps: recruitment, screening, and selection.

Results:
A. True
B. False

Answer 11

The answer is A. True.

Question 12

Regarding age, which question is legal to ask?

Results:
A. How old are you?			
B. What are the ages of your children?
C. Are you 18 years of age or older?
D. None of the above.

Answer 12

The answer is C.
For safety and legal purposes, it is important to know if you are hiring a minor. However, beyond that it is not necessary to know the age of an applicant. The Age Discrimination in Employment Act also protects applicants over the age of 40 from discrimination, and we will discuss that in more detail in the weeks to follow. (Practice Made Perfect, page 49)

Question 13

Regarding arrest record, which question is legal to ask?

Results:
A. Have you ever been arrested?
B. Have you ever been convicted of a crime?
C. Have you ever been convicted of drug possession?
D. Do you have a criminal record?

Answer 13

The answer is B.

Practice Made Perfect, page 49) -
Being arrested does not constitute guilt; only a conviction in a court of law indicates that the candidate committed a crime. If the candidate answers yes to this question, you may ask for details at that time. In some circumstances, their answer can be a factor in hiring the candidate, but please check with your legal counsel for advice specific to your state. This is very important, if you are now, or considering in the future, eliminating candidates who are convicted of certain crimes.

Question 14

Regarding the national origin of the candidate, which question is legal to ask?

Results:
A. Are you legally eligible for employment in the United States?
B. What is your national origin?
C. Where are your parents from?
D. What is your maiden name?

Answer 14

The answer is A.
(Five-Minute Consult, page 241)
You may ask their legal eligibility to work in the U.S. You can also ask if they have ever worked under a different name, but none of the other choices are legal. Are there more aspects to consider during the interview process?

Question 15

What other procedure is legal during the interview process?

Results:
A. List all clubs, societies, and lodges to which you belong.
B. Tell me about the training, education, and work experience you received when you served in the military.
C. Provide an emergency contact.
D. Provide your previous address.

Answer 15

The answer is B.
(Five-Minute Consult, page 241)
Regarding military experience, you may not ask what type of discharge the candidate received. As far as clubs and organizations, the candidate can be asked about membership in organizations that the CANDIDATE considers relevant to job performance (not what YOU consider relevant!). An emergency contact cannot be requested until after the individual has been hired. It is not acceptable to ask questions regarding previous address, how long they have lived at their current address, or if they own their own home.

Question 16

What is another important part of the hiring process?

Results:
A. Calling for references without the applicant’s knowledge to obtain an honest reply.
B. Performing a credit check on the applicant without their knowledge to avoid dishonest excuses.
C. Obtaining any relevant degrees or licenses from the candidates as proof of their credentials.
D. Calling all remaining candidates after a decision is made, even if they are not chosen.

Answer 16

The answer is D.
(Practice Made Perfect, pages 51-54)
Always obtain permission from the candidates to perform reference checks and credit checks. A paper degree or license does not guarantee that the applicant obtained and continues to hold a valid and current educational or professional qualification. You should contact the institution to verify the current license status or degree obtained. It is polite to call all candidates after the final decision has been made, after the chosen candidate has accepted the position. You can also ask the best of those not chosen, if another position becomes available, would they be willing to be considered in the future. Let us turn the tables for a minute, and talk about giving a referral on a former employee.

Question 17

Negligent referral is when a person refuses to give an employment reference on a former employee.

Results:
A. True
B. False

Answer 17

The answer is B. False.
(Practice Made Perfect, page 51)
As a previous employer, you can give information on a former employee IF the information is true and can be proven true with written documentation. You are also obligated to divulge if a former employee had a propensity for violence or possessed weapons in the workplace. Failure to tell a prospective employer of a propensity for violence of the former employee constitutes Negligent Referral, and you could be held responsible for violent or illegal acts committed by the person in the employ of the new employer! The goal of recruiting, interviewing, and hiring is to obtain an employee that compliments your team and helps your practice succeed.

Question 18

When interviewing, it is important to

Results:
A. Assess the needs of the practice.
B. Develop a good job description.
C. Do not rush through the interviewing process.
D. All of the above

Answer 18

The answer is D, all of the above.

Five-Minute Consult, page 240

Question 19

Which of the following is true of the Orientation phase?

Results:
A. It takes place during the first two days on the job.
B. It can take up to six weeks to assimilate a front desk staff member.
C. The new employee is the only one affected by the orientation process.
D. Allow the new employee to refrain from management meetings during this phase.

Answer 19

The answer is B.
(Five-Minute Consult, pages 244-245)
Effective orientation is a gradual process that goes beyond the first two days on the job. Where a front desk staff member may need six weeks to feel comfortable or assimilate, it can take a new doctor up to six months!

Question 20

According to statistics, new staff members are at a significantly lower risk of injury on the job than veteran staff members doing the same tasks.

Results:
A. True
B. False

Answer 20

The answer is B, False.
Regulatory Compliance Manual, page 18)
Indeed, new hires are more likely to sustain injury. This reinforces how important it is to include safety training in the orientation phase. In all matters of safety, OSHA standards have adopted what is known as a ‘performance-oriented’ attitude toward training.

Question 21

The best way to summarize the “performance-oriented” attitude of OSHA toward training is

Results:
A. Safety information is readily available for all employees to access.
B. Training is performed and documentation indicates the comprehension of the employee of the material.
C. Training certificates are routinely filed in the personnel file of the employee.
D. A ‘new employee checklist’ is used to ensure all steps are completed upon hiring.

Answer 21

The answer is B.
(Regulatory Compliance Manual, page 19)
All of the possible answers are actually correct. However, the BEST answer is that training must go beyond simply providing safety information and a piece of paper in the file; the employee must have comprehended the information and be competent at knowing and applying the safety standards in the workplace.

Question 22

When decisions are made during a staff meeting, you can use all of the following ways to ensure implementation EXCEPT:

Results:
A. The practice owner performs the function of secretary to record decisions during the meeting.
B. Meeting notes are distributed to staff members within a few days of the meeting.
C. A master copy of the notes is filed and used as reference to ensure completion of duties.
D. Tasks are assigned to specific people along with a deadline to report their results.

Answer 22

The answer is A.
(Practice Made Perfect, page 29)
While it is very important for the practice owner to attend meetings, even if they are not in charge of the event, they may not always be the best one suited for the secretarial duties. They often need to be available for emergency patient care, or absorbing and responding to the meeting discussion

Question 23

Complete a performance evaluation on each employee at a minimum of

Results:
A. Once a year.
B. Two weeks after they are hired, and annually thereafter.
C. At the end of the trial employment period, and every two years thereafter.
D. At the end of the trial employment period or no more than 90 days after hiring, and once a year thereafter.

Answer 23

The answer is D.
(Practice Made Perfect, page 58)
The more frequent the evaluations, the more open the communication. Poor performance should be addressed soon after it occurs, rather than waiting for a formal performance review period. Wage and salary reviews should not coincide with evaluations, unless specific policies dictate, such as when a new hire has successfully completed their trial period. Prepare the written evaluation before meeting with the employee for the review. Can you share the document before this meeting?

Question 24

It is not advisable to let the employee review their written evaluation results before meeting with them personally.

Results:
A. True
B. False

Answer 24

The answer is B. False.
(Practice Made Perfect, page 58)
Marsha Heinke in Practice Made Perfect says to consider this idea. It can give the employee time to prepare a response to perceived problems and develop suggestions for improvement. This same introspection can be accomplished by having the employee complete a self-evaluation a week prior to the meeting. This self-evaluation is reviewed by the evaluator to identify differences in opinions about the performance of the employee.

Question 25

The engaged employee is created by the management providing ``` Results: A. Clarity about goals and direction. B. Frequent feedback. C. The chance to grow and develop new skills. D. All of the above ```

Answer 25

The answer is D. All of the above. (Five-Minute Consult, page 268) In any team, there are bound to be conflicts from time to time. Conflict is a byproduct of the workplace, and a practice with no conflicts at all is not necessarily a healthy environment. It may mean that the staff is afraid to speak up, or the practice culture is such that everyone simply does what they are told in a passive way. They may all think so much alike that there is no creative tension to promote new ideas and changes.

Question 26

The ‘protected classes’, including those over 40 and pregnant women, cannot be terminated from employment. Results: A. True B. False

Answer 26

``` The answer is B. False. Indeed they can be terminated. Their inclusion in a protected class does not ‘protect’ them from termination for the proper reasons. They are held to the same standards as any employee, such as performance, attendance, and behavior. They just cannot be terminated BECAUSE they are older, or pregnant, or a specific color or gender, etc. As long as you document performance incidents as they happen and discuss them with the employee as mentioned in Practice Made Perfect, there will be no question as to why an employee is being terminated ```

Question 27

Which of the following actions during dismissal will increase your risk of a wrongful discharge suit from an employee? Results: A. Poor timing, such as waiting so long that the rumor gets to them first. B. Poor wording, including comments about attitude rather than facts about hospital policy. C. Poor location, where the employee feels publicly humiliated in front of peers. D. All of the above

Answer 27

The answer is D. Practice Made Perfect, page 66) A termination needs to be handled correctly and respectfully.

Question 28

All of the following are true of hospital operations and procedures manuals EXCEPT Results: A. Expectations for attendance and punctuality appear in the policy manual. B. Job Descriptions can be used to build the procedures manual. C. The Code of Conduct appears in the procedures manual. D. A history of the practice can be part of the policy manual.

Answer 28

The answer is C. (Practice Made Perfect, pages 31-35) The Code of Conduct describes the behavior expected from all employees, and should appear in the hospital policy manual.

Question 29

When should job descriptions be addressed? Results: A. When a position is brand new or does not currently have a description. B. Before the recruiting stage for an open position, and during the subsequent interview. C. As the position changes, to reflect the updates and revisions; annually at a minimum. D. During development of a training program or evaluation system. E. All of the above

Answer 29

The answer is E. | Practice Made Perfect, page 40

Question 30

How does a job description relate to the application of the American with Disabilities Act (ADA) in employment? Results: A. Essential duties described in the job description are the necessary qualifications for any candidate, with or without the assistance of reasonable accommodation. B. The ADA requires the use of job descriptions in employment to define the essential duties for a candidate. C. A job description can be generated after a disabled candidate is hired to show that they cannot perform the essential functions of the position. D. All of the above

Answer 30

The answer is A. (Practice Made Perfect, page 42) The ADA does NOT require job descriptions for positions. However, if a job description is prepared BEFORE hiring, then the description will be considered as evidence of the essential duties.

Question 31

The hazardous materials list for the practice should include all of the following except A. Injectable medications. B. Antiseptics, disinfectants, and sanitizers. C. Pharmaceutical tablets. D. Compressed gases.

Answer 31

The Correct Answer is C. Explanation: The 5-Minute Veterinary Practice Management Consult, page 408. While injectable medications need to be on this hazardous materials list, pharmaceutical tablets do not. All of the other materials need to be listed, as well as pesticides, laboratory reagents, radiographic chemicals and supplies, and hospital cleansers including bleach, but excluding routine household cleansers.

Question 32

The practice should have an individual emergency plan for which types of emergencies? A. Natural disasters such as floods, tornadoes, hurricanes and earthquakes B. Potentially man-made emergencies such as fires, robbery, and toxic spills C. Emergencies that are specific to our profession such as loose vicious animals D. All of the above

Answer 32

The Correct Answer is D. Explanation: The 5-Minute Veterinary Practice Management Consult, page 424. All of these situations represent emergencies, which need to have a response plan in place. It is important that all staff know the emergency plans and receive adequate training to include how to activate a central alarm system, notify others via a phone list, or complete an evacuation of the facility.

Question 33

Under the Occupational Safety and Health Act, business owners do have the right to A. Require a Compliance Officer to obtain a warrant before entering or inspecting the business. B. Know the name of the complainant if the inspection is due to an alleged employee complaint. C. Be present during an OSHA officer’s interview with staff members. D. Consult with an attorney or advisor only after an inspection when the results are divulged.

Answer 33

The Correct Answer is A. Explanation: Regulatory Compliance Manual, pages 5-7. Owners do have the right to require a warrant before inspection, but this is typically not advisable due to the adversarial nature of the request. The owner can know the complaint, but not the name of the complainant. Although the owner cannot be present during interviews with staff members, they do have the right to request that these interviews minimally impact business operations. An attorney or advisor can be consulted before, during, or after the inspection and before responding to any inquiry.

Question 34

In regards to OSHA Form 300, the Log of Work-Related Injuries and Illnesses, which of the following statements is true? A. The form is required of all employers, regardless of the number of employees. B. If the business has more than one establishment, a separate set of records must be maintained for each location. C. The original log may not be maintained at an alternate location. D. A business required to maintain the Form 300 is exempt from completing the Summary Form 300A.

Answer 34

The Correct Answer is B. Explanation: Regulatory Compliance Manual, page 12. The Form 300 is only required of businesses that employ 11 or more employees, at anytime during the year. Although the log may be maintained at an alternate location, an up-to-date copy (within 6 working days) must be present at the worksite at all times. A business that is required to maintain the Form 300 must also complete the Form 300A, the Summary of Work-Related Injuries and Illnesses.

Question 35

Which statement is true of Personal Protective Equipment (PPE)? A. PPE can be provided when it would too expensive for a business to redesign a hazardous situation. B. Compliance by employees seems to be higher when they all share the same PPE and take community responsibility for the objects. C. Employees can be terminated for failure to use PPE as instructed. D. OSHA holds the employee responsible for using PPE, not the leadership of the hospital.

Answer 35

The Correct Answer is C. Explanation: Regulatory Compliance Manual, pages 15-18. The business is expected to first use engineering controls to correct a hazardous condition, and budgetary constraints are not generally an excuse for avoiding this reengineering. Many practices have found increased compliance when PPE is an individual item rather than “community property.” OSHA holds the leadership of the practice responsible for enforcement of safety rules including the use of PPE.

Question 36

Which one of the following would be considered biomedical waste? A. Disposable bedding saturated with urine from a dog undergoing chemotherapy. B. Bloody gauze sponges discarded after a dog has been hit by a car. C. Tissue removed from a cat during a spay. D. IV tubing and catheter removed from a patient receiving pain medication for a broken limb.

Answer 36

The Correct Answer is A. Explanation: Regulatory Compliance Manual, pages 22-23. Waste from chemotherapy patients is considered biomedical waste. Blood or bodily fluids on absorbent materials or supplies are only considered biomedical waste if they contain human pathogens (some states also include primate blood). Animal tissues are only biomedical waste if they are infected with diseases that are communicable to humans.

Question 37

In regards to Material Safety Data Sheets, which of the following statements is true? A. If the practice has a MSDS library in their computer system, it is not necessary to have hard copies elsewhere in the facility. B. If there are multiple brands of the same product in the practice, it is only necessary to have one type of MSDS for that product. C. It is advisable to keep multiple copies of the MSDS in the library system if there is a generic and brand name of a medication. D. OSHA discourages practices from keeping the MSDS library in the boss’s office.

Answer 37

The Correct Answer is D. Explanation: Regulatory Compliance Manual, pages 52-53. The MSDS library must be readily accessible to workers in every area at all times, and employees must know how to find and use this library; therefore it is unlikely that a solely computerized library will provide this instant access to everyone, in every area of the practice. Each brand of a product should have its own MSDS prepared by the manufacturer of that product. Rather than including multiple copies of a MSDS under different brand and generic names, it is best to file the original MSDS under the generic name if that is most widely used in the practice, and then add a place marker under the brand name that refers the user to the generic named MSDS.

Question 38

Which of the following statements is true in regards to controlled substances? A. These medications are classified primarily according to their type of medical uses. B. A veterinarian who practices in multiple locations must be registered with the DEA in each location according to federal regulations. C. A technician administering controlled substances to a patient must do so under direct supervision of a veterinarian on the premises. D. It is against federal regulations to loan controlled substances to another veterinary hospital.

Answer 38

The Correct Answer is C. Explanation: Law and Ethics, pages 263, 265-267, 276. Controlled substances are classified according to their potential for abuse. A veterinary who works in multiple locations can obtain an agency status from the registrant at that secondary location in order to administer, dispense, or prescribe. Controlled substances can be loaned between veterinary hospitals, as long as this transfer includes all of the proper paperwork so the flow of the drugs can be traced.

Question 39

Regarding the inventory and storage of controlled substances, which of the following statements is true? A. Inventory should be taken every two years following the initial inventory date, regardless of whether or not the ownership of the business changes. B. Controlled Substances should be stored behind double locks, therefore two separately locked doors. C. Schedules II through V substances cannot be stored with the antibiotics, hormones, steroids, and other drugs in the facility, but must be in their own separate location. D. An exact count of Schedule II substances is required, but estimated counts for Schedules III, IV, and V are permitted unless the container holds more than 1000 tablets or capsules.

Answer 39

The Correct Answer is D. Explanation: Law and Ethics, page 277-278; Regulatory Compliance Manual, pages 106. When a veterinarian acquires an existing practice, an inventory of controlled substances must be taken. These drugs must be kept in a securely locked, substantially constructed cabinet or safe, but there is no requirement for double locks. Schedules II-V substances can be stored with other drugs as long as clients and non-staff people do not have ready access to them.

Question 40

Which of the following statements is true regarding the legal use of veterinary drugs? A. Prescription drugs are those used only by or under the supervision of a veterinarian, whereas legend drugs are those drugs manufactured for exclusive use in animal health. B. Over the Counter (OTC) drugs gain that designation when the directions for use can be readily understood and followed by the ordinary individual. C. Extra –label use of drugs is identical to using drugs that are unapproved by the FDA. D. The FDA requires that prescription medications be sold in childproof containers, with specific information on the outside label.

Answer 40

The Correct Answer is B. Explanation: Law and Ethics, pages 219-220, 223, 233-235. Legally, the terms prescription and legend mean the same thing; they can only be used by or under the supervision of a veterinarian. OTC does not refer to where you find the medication, but rather the ease of use by an ordinary individual. Extra-label use refers to using veterinary drugs other than as approved by the FDA on the label; these drugs have been approved by the FDA for at least one purpose. Unapproved drugs, however, are not generally recognized as safe and effective by experts and have never been subjected to the FDA approval process. Although the FDA does not require the use of childproof containers, both the Consumer Products Safety Commission and the AVMA Council on Therapeutic and Biologic Agents encourage veterinarians to use them.

Question 41

``` Which of the following federal regulatory agencies is the primary regulator of vaccines? A. DEA B. FDA C. USDA D. EPA ```

Answer 41

The correct answer is C. (Law and Ethics, page 216) 1. The DEA enforces the Controlled Substances Act. 2. The FDA regulates animal food and feeds and most animal health products such as veterinary drugs, medicated animal feeds, and pet foods. 3. The USDA regulates vaccines and all biological products including antitoxins, live microorganisms, and the antigenic or immunizing components of microorganisms intended for use in the diagnostics, treatment, or prevention of disease in animals. 4. The EPA regulates preparations used as rodenticides, insecticides, and germicidal preparations used topically on animals or inanimate objects.

Question 42

Biological products in the veterinary industry include A. Vaccines and bacterins. B. Canine distemper virus antibody test kits. C. Intradermal skin-testing antigens. D. Feline leukemia virus test kits. E. All of the above

Answer 42

The answer is E. (Law and Ethics, page 255) The answer is all of the above. It is important to realize that all of those products are considered biologicals and thus regulated by the USDA. It is easy to forget that test kits and intradermal antigens are in that category.

Question 43

Which of the following is NOT true? A. The FDA has authority over pesticides that are administered orally or parenterally to animals. B. The EPA has authority over pesticides that are applied to the environment. C. The FDA has authority over pesticides that are applied topically to animals. D. All of the above statements are true.

Answer 43

``` The answer is C. (Law and Ethics, page 216) The FDA regulates any pesticide that is administered orally or parenterally to animals. The EPA has authority over pesticides applied to the environment, OR to the animal via topical administration. Think: FDA = internal EPA = external ```

Question 44

The Occupational Safety and Health Administration have authority over which type of employers? A. Federal contractors B. Employers with more than 15 qualified employees C. Employers with more than 50 qualified employees D. All employers, regardless of the number of employees

Answer 44

The answer is D. (Regulatory Compliance Manual, page 6) OSHA applies to all workplaces

Question 45

An employer must have how many employees to be required to maintain OSHA Forms 300 and 300A? A. 11 B. 15 C. 20 D. Applies to all employers, regardless of the number of employees.

Answer 45

The answer is A. (Regulatory Compliance Manual, page 12) It is important to realize that while all employers must provide a safe workplace, ONLY employers with more than 11 employees (at anytime during the year) need to maintain the Log and Summary forms.

Question 46

``` All OSHA records related to injuries or illnesses must be maintained for A. 3 years. B. 5 years. C. 7 years. D. 10 years. ```

Answer 46

The answer is B. (Regulatory Compliance Manual, page 14) Documents should be maintained for at least 5 years in your facility.

Question 47

When are you required to notify OSHA of a workplace accident or illness? A. When an incident results in the death of an employee. B. When an incident results in the hospitalization of five or more employee from the same cause. C. When an incident of violence results in the death of an employee. D. All of the above

Answer 47

The answer is D. (Regulatory Compliance Manual, page 12) The death of an employee from work-related causes including violence, or a hospitalization of five or more employees from the same cause, both require immediate OSHA notification. The definition of “work-related incident” is an important point pertaining to these documents and notifications.

Question 48

All of the following would be considered work-related incidents EXCEPT: A. An employee stops by to pick up their paycheck on their day off, and slips and falls on a puddle. B. A receptionist drops off a package for the practice at the postal office. Then on her way home she is involved in a traffic accident. C. A technician is assisting a patient to the car and sustains an injury while in the parking lot. D. A manager is dropping off a bank deposit on their way home and is involved in a traffic accident.

Answer 48

The answer is B. (Regulatory Compliance Manual, page 13) To give you the official definition per Phil Seibert’s book: An injury or illness is considered work-related if “an event or exposure in the work environment either caused or contributed to the resulting condition or significantly aggravated a pre-existing injury or illness.” The off-duty employee picking up their paycheck is certainly in the work environment. The same holds true for the employee in the parking lot, performing work-related duties at the time of the injury. If errands are run on behalf of the company, the time spent on that errand is considered work related; however once the errand is done and the normal route is resumed home, then the employee is no longer “working.”

Question 49

The term “self aid” kit is advisable for general human medical supplies for employees in the practice because A. “First aid” must be provided by someone on every shift that is adequately trained to administer the aid. B. In general, a “first aid” kit is not required unless emergency care is more than 15 minutes away. C. The contents of a “first aid” kit must be determined by a physician familiar with the type of business. D. The strict standards for Blood borne Pathogens must be adhered to by the person administering “first aid”. E. All of the above

Answer 49

The answer is E. (Regulatory Compliance Manual, pgs 14-15) All of the above would be required for a kit that is termed “First Aid”. But if you consider your medical supplies for the human employees as “self aid”, then it is assumed that if the person is not capable of self treatment then they need to seek medical attention at a facility or by a physician.

Question 50

Which of the following is considered medical waste in a veterinary practice? A. IV tubing from a patient recovering from post-operative fracture repair. B. Internal organs removed from a routine dog neuter. C. Syringe and catheter used on an animal receiving chemotherapy treatment. D. Bloody sponges from a hit-by-car trauma case.

Answer 50

The answer is C. (Regulatory Compliance Manual, page 23) Blood, bodily fluids, and tissues from animals are not medical waste unless the animals were infected with a disease communicable to humans. Supplies and medical devices are not medical waste unless they were used on these same types of diseased animals, or used to administer chemotherapy to an animal patient. How did my story turn out? After I politely explained the short definition of medical waste to the nice police officers, I happily took our bag of trash back from them. I am not certain they appreciated the education but I was glad to have known the facts to back me up!

Question 51

``` What does the acronym MSDS stand for? A. Medical Staff Determination Sheets B. Material Safety Data Sheets C. Mineral Sensitivity Definition Standards D. Medical Safety Definition Standards ```

Answer 51

The answer is B. | Regulatory Compliance Manual, pages 52-53

Question 52

``` All of the following hazardous materials would require an accompanying MSDS in the library EXCEPT A. A single 1mL vial of a medication. B. A vendor sample of a cleaning agent. C. A bottle of household window cleaner. D. Reagents used in the laboratory. ```

Answer 52

The answer is C. (Regulatory Compliance Manual, pages 52-56) Any common household item that is used essentially the same way as the normal consumer would use the product is exempt from the hazardous category.

Question 53

What is considered in the classification of a medication as a “controlled substance?” A. The potential for theft. B. The potential for abuse. C. The potential for illegal access to the drug. D. The medical purpose of the medication.

Answer 53

The answer is B. - (Law and Ethics, page 263) | Drugs that are subject to abuse are considered controlled substances.

Question 54

Which of the following is true of the Roman numeral inside the “C” on the label of a controlled substance? A. The number indicates the Schedule of the drug. B. The higher the number, the more potential for abuse by that drug. C. The number refers to the maximum quantity of the drug that can be maintained in inventory. D. The lower the number, the less security is needed when ordering the drug.

Answer 54

The answer is A. (Regulatory Compliance Manual, page 105; Law and Ethics, pages 263-264) This Roman numeral is the Schedule of the drug and the lower the number the MORE potential for abuse with this drug. Therefore, the lower the number the MORE security is needed when ordering the drug.

Question 55

All of the following are true of DEA registration EXCEPT A. The “registrant” is held responsible for the actions of their assigned “agent” associate veterinarians in regards to the controlled substances. B. Veterinarians can be registered at more than one location if they practice at multiple facilities. C. A technician who administers controlled substances should be registered with the DEA. D. Relief or mobile veterinarians must store their controlled substances at the registered address.

Answer 55

The answer is C. (Regulatory Compliance Manual, page 106) All of those statements are true except that a technician administers controlled substances while working under the direct supervision of the veterinarian who is registered with the DEA. Ultimately that veterinarian is responsible for activities involving controlled substances.

Question 56

All of the following are true in regards to the storage of controlled substances EXCEPT A. It is not required that the drug be stored behind double locks. B. Portable lock boxes must be securely affixed to an immovable object. C. Controlled drugs can be dispersed among the entire pharmacy as long as the pharmacy area has adequate security. D. Mobile units are only required to lock the car doors to secure the drugs inside.

Answer 56

The answer is D. (Regulatory Compliance Manual, pages 106-107) Controlled drugs inside a mobile unit should be kept: * in a locked box * inside the mobile unit * affixed to an immovable location preferably out of sight. It is not enough to just lock the car doors to secure these drugs inside a mobile unit.

Question 57

All of the following is true of ordering controlled substances EXCEPT A. Drugs cannot be transferred between multiple practice locations. B. Controlled drugs in Schedule II must be ordered using triplicate DEA Form 222. C. Controlled drugs in Schedules III through V are ordered the same as any other medication. D. Prescriptions filled at a local pharmacy should be for a specific patient, not for “hospital use”.

Answer 57

The answer is A. (Regulatory Compliance Manual, pages 107-109) Drugs can be transferred between multiple practice locations with extreme caution and meticulous documentation. All the same rules would apply in this situation. The second location would need to be registered with the DEA, have adequate storage security, and appropriate usage records. If Schedule II drugs are being transferred, the DEA Form 222 must also be used just as if the original location were a vendor of the drug.

Question 58

``` The regulatory agency known as the FDA is actually the A. Federal Drug Administration. B. Federal Dispensing Act. C. Food and Diet Agency. D. Food and Drug Administration. ```

Answer 58

The answer is D. (Law and Ethics, page 215) The FDA is the Food and Drug Administration. They are responsible for regulating animal foods and most animal health products. The FDA enforces the Food, Drug and Cosmetic Act (FD and C Act), which covers products such as pet foods, medicated animal feeds, and veterinary drugs.

Question 59

All of the following is true in regards to drug terms EXCEPT A. Legend drug means essentially the same thing as “veterinary prescription drug”. B. Over-The-Counter drugs are defined as those medications that can be purchased off the shelf. C. Veterinary prescription drugs can only be prescribed by a licensed veterinarian. D. Only drugs with the FDA’s label “Caution: Federal law restricts this drug to use by or on the order of a licensed veterinarian” are prescription drugs.

Answer 59

The answer is B. (Law and Ethics, pages 219-220) The designation of Over-the-Counter (OTC) has nothing to do with where the product is purchased, although this is an easy assumption to make. It actually stems from the use of the drug. A product is considered Over-the-Counter if the directions for use can be readily understood and followed by an ordinary individual without medical training.

Question 60

Which of the following would NOT be considered an adverse drug reaction? A. Unexpected side effect B. Unintended sensitivity reaction C. Lack of efficacy associated with clinic use of the drug D. All of the above are adverse drug reactions

Answer 60

The answer is D. (Law and Ethics, page 235) All of these circumstances are considered “adverse reactions”, including an unexpected “inefficiency “ of the drug to treat the clinical problem for which it was manufactured (i.e. the drug doesn’t work like it’s supposed to).

Question 61

Which of the following people in a practice would be more likely classified as an independent contractor? A. A technician that only works the third weekend of every month. B. A groomer who leases space from the practice owner and provides all her own equipment. C. A relief veterinarian who works Tuesday and Thursday each week, and is paid monthly. D. A specialist who is required to see appointments every Saturday from 8am to 12 noon, in an extra available examination room.

Answer 61

The Correct Answer is B Explanation: Regulatory Compliance Manual, page 120. The technician who works part-time is still an employee, if these set work hours are established by the employer. Although many “relief” veterinarians are independent contractor, the one described here works a set schedule that may be imposed by the employer, and is paid monthly rather than “by the job.” The specialist is also “required” to work these Saturday hours, presumably by the employer therefore establishing their employee-employer relationship. The groomer, however, works on her own leased space and provides her own tools and materials, making her the most likely one on the list to be an independent contractor (given the information provided).

Question 62

``` A receptionist receives wages of $8.00 per hour. During one workweek, she accumulates 45 hours on her timecard, and 8 hours of that week was an authorized paid vacation day. What is her gross pay for that week? A. $360.00 B. $380.00 C. $356.00 D. $392.00 ```

Answer 62

The Correct Answer is A. Explanation: The 5-Minute Veterinary Practice Management Consult, page 466. Although this employee accumulated over 40 hours in the workweek, 8 hours of that time was a paid vacation day so there was no overtime accumulated. “Time worked” does not include paid time off, such as sick leave, vacation days, or paid holidays, and an employee must only be paid overtime if the “time worked” is above 40 hours. Therefore all hours will be paid at the regular rate of $8.00 per hour.

Question 63

Which of the following is an example of quid pro quo sexual harassment? A. An employee sends out a mass email with sexually offensive jokes. B. A manager touches a subordinate employee in a sexually suggestive manner. C. A receptionist is denied a salary increase because she rejected a kiss from the owner. D. The supervisor makes sexual advances on the practice owner and is subsequently terminated.

Answer 63

The Correct Answer is C. Explanation: Practice Made Perfect, pages 76-77. Quid pro quo sexual harassment occurs when submission to or rejection of unwelcome sexual conduct is used as the basis of employment decisions affecting the individual. All the other choices are examples of “environmental” sexual harassment, which includes unwelcome sexual conduct.

Question 64

A practice owner should be worried about an EEOC investigation if which of the following recently occurred? A. A Hispanic candidate was not hired although she was the best qualified for an open technician position. B. A pregnant employee was recently terminated after receiving two warnings for safety policy violations. C. A candidate in a wheelchair was not offered an interview because they did not meet the advertised requirement of being a credentialed veterinary technician for an open position. D. An assistant who is 54 years old was not given a promotion to technician in a practice with one veterinary and eight support staff.

Answer 64

The Correct Answer is A. Explanation: Practice Made Perfect, pages 76-79. It is reasonable to assume that the Hispanic candidate in choice (A) was not hired because of her race, since she was the most qualified applicant. Pregnant employees can be terminated for reasons other than their pregnancy, just like any other employee. The candidate in the wheelchair did not meet the criteria for the position, so was not interviewed because they were not qualified to fill the job and not because they had a disability. The EEOC covers those employers with 15 or more employees, even though choice (D) could have been an example of age discrimination if investigated further.

Question 65

Which statement is true of the Family and Medical Leave Act? A. Applies to employers with 20 or more eligible employees. B. A new employee is eligible for leave after the 90-day introductory period. C. If the employee’s position had to be filled during the leave, the employer has no requirement to bring the employee back after 12 weeks of leave. D. The employer may require medical certification from a health care provider.

Answer 65

The Correct Answer is D. Explanation: Contracts, Benefits, and Practice Management, pages 180-181. FMLA applies to employers with 50 or more employees within a 75-mile range of that worksite. An employee is eligible for FMLA leave after 12 months of employment, if they have been employed for at least 1,250 hours of service during that 12-month period immediately preceding the commencement of the leave. Upon return from leave, the employee has the right to be placed in the original or a similar job position and receive the same pay, benefits, and working conditions. However, the employer may indeed request documentation from health care providers, which substantiate the need for a medical leave.

Question 66

A true statement of unemployment insurance is A. An employee is eligible if they have been discharged for misconduct. B. The company will never have to worry about a claim from an employee who has voluntarily terminated employment. C. The employer is in a better position to dispute an unemployment claim if they have required a written letter of resignation. D. The major objective of this program is to enforce punitive measures on employers who have high turnover.

Answer 66

The Correct Answer is C. Explanation: Practice Made Perfect, pages 81-82. An individual is disqualified if they have been discharged for misconduct. Although it may seem absurd, if an employee quits voluntarily and takes another job that doesn’t work out, they can leave that second job and file for unemployment benefits with the state resulting in a claim against the original employer. Then the burden is usually upon the employer to prove that the former employee quit without good cause or there is another reason why the employer should not have to pay. This is why all employees who quit voluntarily should submit a written letter of resignation. Although employers with low turnover often pay a reduced tax, the major objective of this program is not to punish employers but to provide unemployed workers with modest financial support during temporary periods of involuntary unemployment.

Question 67

Health insurance is a complex benefit for employers to maintain because A. The Consolidated Omnibus Budget Reconciliation Act allows for extension of coverage even after termination of employment. B. Providing health insurance is a federal requirement with mandatory guidelines and regulations. C. The Mental Health Parity Act requires all employers to provide mental health benefits. D. The Health Insurance Portability and Accountability Act does not protect workers’ coverage when they change jobs.

Answer 67

The Correct Answer is A. Explanation: Practice Made Perfect, pages 82-83. COBRA does indeed allow for extension of health insurance coverage after termination of employment. However, there is no federal or state requirement for an employer to provide health insurance or mental health insurance to its employees. HIPAA does protect workers’ coverage when they change jobs.

Question 68

Under the Polygraph Protection Act, which of the following statements is true? A. Testing of front office job candidates is permitted if all candidates receive the same test. B. After receiving DOL approval, technician candidates who will handle controlled substances can be asked to submit to a polygraph test. C. An employer can suggest that an employee take the test to reduce suspicions of future misconduct. D. An employer can terminate an employee based on the results of a test the employee took voluntarily.

Answer 68

The Correct Answer is B. Explanation: Practice Made Perfect, page 83. In general, an employer cannot suggest or require an employee to submit to a polygraph test, nor can they terminate an employee based on results of a polygraph test. Only under very limited conditions and with approval by the Department of Labor can an employer ask prospective employees who would be required to handle controlled substances to take a polygraph test; therefore a receptionist would not be in this position.

Question 69

The posting of required Department of Labor posters adheres to which directive below? A. Location is not a requirement, therefore inside the manager’s office is an acceptable place to post. B. All Equal Opportunity provisions of the law must be displayed. C. It is okay for the posters to be covered up with bulletin board memos, as long as the posters are physically present in the building. D. Required posters include Family and Medical Leave Act, Occupational Safety and Health Act, and the Uniformed Service Employment and Reemployment Rights Act

Answer 69

The Correct Answer is B. Explanation: Practice Made Perfect, page 83. Employers are required to post Department of Labor posters in a conspicuous location frequented by employees. Therefore it would not be advisable to hang them in the manager’s office, or allow them to become covered up by other memos. Although the Uniformed Service Employment and Reemployment Rights Act is not a required poster, all Equal Opportunity provisions of the law must be displayed.

Question 70

Which is true of the Immigration Reform and Control Act in regards to employment eligibility? A. It is a good practice to hire only United States citizens, even if more qualified immigrants apply for the position. B. The I-9 form must be completed by the employee and a representative of the business within five business days of the staff member beginning work. C. The company representative can require which documents can be used from the list of accepted proof. D. The completed forms must be maintained for the longer of three years after the date the staff member begins work, or one year after the staff member departs.

Answer 70

The Correct Answer is D. Explanation: Regulatory Compliance Manual, pages 117-118. Although the Immigration Reform and Control Act made it against the law to hire illegal immigrants, it is not good practice to hire ONLY United States citizens over more qualified eligible immigrants. The I-9 form must be completed by the employee before they begin work and by the company representative within 3 business days of the staff member starting work. This company representative must not require certain documents from the list of accepted proof; it is the choice of the staff member to decide which documents they will use. The completed form must be maintained for the longer of 3 years after the date the staff member begins work, or 1 year after the staff member departs.

Question 71

All of the following are true of the minimum wage requirements except: A. Overtime is required at 1.5 times the regular rate for hours worked on weekends and holidays. B. Some states adopt a set a higher minimum wage than Congress. C. Posting the federal minimum wage poster in a prominent location is required. D. FSLA defines the workweek as seven consecutive, regularly recurring, 24-hour periods totaling 168 hours.

Answer 71

The answer is A. (Practice Made Perfect, page 72)

Question 72

``` Title VII of the Civil Rights Act prohibits employment discrimination based on all of the following except A. Race or national origin. B. Color. C. Sexual orientation. D. Religion. E. Sex. ```

Answer 72

The answer is C. (Five-Minute Consult, page 462) Sexual orientation discrimination may be prohibited in other ways, such as state law, but the Civil Rights Act of 1964 does not include this factor on its original list.

Question 73

The Equal Employment Opportunity Commission was created to enforce the Civil Rights Act of 1964. A. True B. False

Answer 73

The answer is true. (Practice Made Perfect, page 76)

Question 74

``` The EEOC addresses issues involving A. Sexual harassment. B. Pregnancy discrimination. C. Discrimination against the disabled. D. Age discrimination. E. All of the above ```

Answer 74

The answer is E, all of the above. (Practice Made Perfect, page 76)

Question 75

According to the ADA, a disability refers to a: A. Physical impairment that substantially limits more than two major life functions. B. Mental impairment that requires medication and constant observation. C. Physical or mental impairment that substantially limits one or more major life functions. D. Physical impairment that requires hospitalization and physician monitoring.

Answer 75

The answer is C. (Five-Minute Consult, page 464) A physical or mental impairment that substantially limits one or more major life functions. The disability can be physical or mental, and must impair one or more major life functions or activities. Examples of these activities include sitting, standing, and sleeping.

Question 76

``` Although not required by the ADA, this document is the strongest evidence of the essential duties of the job. A. Employee Handbook, AKA Policy Manual B. Job Description C. Standard Operating Procedures D. Code of Conduct ```

Answer 76

The answer is B. (Practice Made Perfect, page 78)

Question 77

``` The ADEA protects individuals who are ____ years old or older. A. 40 B. 45 C. 50 D. 55 ```

Answer 77

The answer is A. (Practice Made Perfect, page 79)

Question 78

All of the following are employer and employee eligibility requirements for FMLA except A. There must be 50 or more employees for each working day during each of 20 or more calendar weeks in a previous year. B. Full-time employees are the only ones counted in the 50-employee requirement; part-time and/or temporary employees are not considered. C. To be eligible, an employee must have been employed for at least 12 months, although they need not be consecutive. D. The eligible employee must have worked at least 1,250 hours during the 12-month period immediately preceding the commencement of leave. E. Employees excluded from coverage are employees working at a site that employs fewer than 50 employees, if the total number of employees within 75 miles of that location is fewer than 50.

Answer 78

The answer is B. (Practice Made Perfect, page 79)

Question 79

An eligible employee can request FMLA leave for all of the following reasons except A. Care for a newborn child of the employee. B. Placement of a child with the employee for adoption or foster care. C. Care for a spouse, child, parent, or sibling of the employee when this family member has a serious health problem. D. Serious health condition that makes the employee unable to perform the functions of his or her job.

Answer 79

The answer is C. (Practice Made Perfect, page 80) All of these are reasons for FMLA leave except the sibling who has a serious health problem. The leave can be granted to care for a spouse, child, or parent only. For the birth or placement of a child, the FMLA eligibility expires at the end of the 12-month period beginning on the birth or placement date.

Question 80

A person is disqualified from unemployment benefits for what reason(s)? A. They voluntarily quit their job without good cause. B. They are discharged for misconduct. C. They refuse an offer of suitable work. D. All of the above

Answer 80

The answer is D. (Practice Made Perfect, page 81) It is typically the responsibility of the employer to prove that a former employee should be disqualified from receiving unemployment fund

Question 81

The acronym COBRA stands for the law known as the A. Consolidated Omnibus Budget Reconciliation Act. B. Comprehensive Occupational Budget Reconciliation Act. C. Comprehensive Omnibus Budget Retaliation Act. D. Consolidated Occupational Budget Recovery Act.

Answer 81

The answer is A. (Practice Made Perfect, page 82)

Question 82

All of the following posters are required by federal law except A. Fair Labor Standards Act and Minimum Wage. B. The Employee Polygraph Protection Act. C. Americans with Disabilities Act. D. Family and Medical Leave Act.

Answer 82

The answer is C. (Practice Made Perfect, page 83) All of those posters are required except for ADA, plus you must post a notice of Equal opportunity provisions and OSHA job safety and health protection requirements.

Question 83

According to the AVMA Principles of Veterinary Medical Ethics, which of the following is true regarding the provision of emergency medical care to a patient? A. A veterinarian need only provide euthanasia in an emergency situation where the pet owners cannot pursue further treatment. B. If the pet owners reject euthanasia, the veterinarian has no obligation to stabilize the patient for transportation to another veterinary hospital. C. A veterinarian who is not qualified to treat or manage a certain emergency should refer their client to other veterinarians who can provide appropriate emergency services. D. When a veterinarian is not able to provide services, they have no obligation to see that care is available elsewhere in the locality.

Answer 83

Correct Answer: C. Explanation: Contracts, Benefits and Practice Management, page 384. In an emergency when a client rejects euthanasia, the veterinarian has an ethical responsibility to stabilize the patient sufficiently to enable transportation to another veterinary hospital for definitive care. When a veterinarian cannot be available to provide services, they should arrange with their colleagues to assure that emergency services are available, consistent with the needs of the locality. A referral should be given if the veterinarian is not qualified to treat or manage an emergency.

Question 84

According to the AVMA Principles of Veterinary Medical Ethics, which of the following is true of the VCPR? A. Once established, the veterinarian should remain readily available for follow-up or arrange for emergency coverage. B. The veterinarian is obligated to dispense necessary prescriptions, but does not have to honor a client's request for a written prescription. C. The veterinarian cannot terminate this relationship at any time. D. The veterinarian can terminate the relationship even during ongoing medical treatment, as long as there are other veterinarians in the area that can treat the patient.

Answer 84

Correct Answer: A. Explanation: Contracts, Benefits and Practice Management, pages 385-386. With an established VCPR, a client’s request for a written prescription should be honored, and the veterinarian should be available for follow-up or arrange for emergency coverage. The veterinarian can terminate the VCPR if there is no ongoing medical or surgical condition with the patient. During ongoing medical treatment, the patient can be referred to another veterinarian as long as they are provided with continued care during the transit.

Question 85

According to the AVMA Principles of Veterinary Medical Ethics, which of the following is true in regards to attending, consulting, and referring? A. When a consultation occurs, the attending veterinarian no longer assumes primary responsibility for the case. B. Consulting veterinarians should not initially communicate their findings and opinions directly to the owner of the patient. C. If a client seeks a second opinion without an official referral, the former veterinarian has no obligation to communicate with the new attending veterinarian on the pet's previous medical history. D. When a referral has been made, and a new VCPR has been established, it is not necessary to obtain the client's consent to obtain previous medical history on the pet.

Answer 85

Correct Answer: B. Explanation: Contracts, Benefits and Practice Management, pages 386-387. During a consultation, the attending veterinarian retains primary responsibility for the case. The consulting veterinarian should communicate their findings directly to the attending veterinarian, and only to the client in collaboration with the attending veterinarian. When a client self-refers, the former veterinarian should communicate with the new attending veterinarian as if the patient and client had been referred. Client consent is needed before the new attending veterinarian can contact the former veterinarian regarding previous history on the patient.

Question 86

The VHMA Code of Ethics addresses all of the following except A. Continuation of education in management. B. Pursuit of the manager certification examination. C. Confidentiality of business and personal affairs of the member's employer. D. Privacy of information produced inside the practice.

Answer 86

Correct Answer: B. Explanation: VHMA Website at www.vhma.org. Although the VHMA Code of Ethics addresses the continued growth and professional development through continuing education and refinement of management skills, the Code does not specifically address the pursuit of manager certification. It does address the confidentiality of business and personal affairs of the member’s employer, and the privacy of information produced within the practice.

Question 87

Which of the following statements is true regarding employment contracts with associates or staff? A. Employment contracts are often utilized in veterinary practices for support staff positions. B. After a candidate is hired, oral agreements during the interview process are not valid. C. If a written employment contract for a specific employee does not exist, there is no reason for a practice to fear a breach of contract claim. D. The Sherman Antitrust Act is considered in conjunction with restrictive covenants.

Answer 87

Correct Answer: D. Explanation: Law and Ethics, pages 204-212; Practice Made Perfect, page 33. An employee policy manual may be considered a contractual agreement, even in the absence of a signed employment contract. Many practices do not utilize employment contracts (particularly for support staff), for a variety of reasons. Once a candidate is hired and paid for work performed, it becomes apparent that some sort of contract must have been formed, and oral agreements become valid. The Sherman Antitrust Act comes into consideration when enforcing restrictive or non-compete covenants.

Question 88

Given the following scenarios and staff actions, select the most appropriate scenario when the capacity to make a valid contract for a pet's medical care might be questioned. A. An elderly client elects euthanasia for their pet, yet the veterinarian waits until the next day to have time to contact someone else in the family. B. A minor brings in the family pet for a new patient appointment, but the receptionist does not request proof of age. C. A couple who both appear to be intoxicated comes in with their pet; expensive medical care is pursued since there were two clients to confirm what was orally agreed upon with the veterinarian. D. A client who is obviously mentally disabled signs an estimate for emergency surgery and the veterinarian moves immediately forward with the procedure.

Answer 88

Correct Answer: A. Explanation: Contract, Benefits and Practice Management, pages 51-53. When an elderly client who appears to be senile arrives requesting euthanasia, it is prudent to seek communication with another family member even if that means waiting until the next day. It is advisable to request proof of age if a client appears to be a minor, and seek communication with a parent or guardian if minority is confirmed. With clients who appear to be under the influence of a substance or mentally disabled, care should be taken when entering into expensive or extensive medical treatment because the contract can be avoided or disaffirmed by the client at a later date. It can be argued that the person could not understand the nature and consequences of the contract at the time it was entered into.

Question 89

Keeping in mind the Law of Agency A. An out of town owner is not obligated to pay for services rendered if the contracted pet sitter must take a pet in for emergency treatment. B. The veterinarian cannot bill the owner unless a written contract exists between the pet owner and the person bringing the pet in to the practice. C. It is important to document phone conversations in the patient's medical record, but it is not necessary to document attempts to reach the owner or verbal messages left by the practice. D. In an emergency, it is advisable to provide stabilizing care first and then call for verification of the Agency relationship.

Answer 89

Correct Answer: D. Explanation: Contract, Benefits and Practice Management, pages 58-60. When an agency relationship exists, such as with a contracted pet sitter, the agent or pet sitter has the power to consent to treatment and bind the owners to payment for services rendered, even when they are out of town and unaware of the emergency need for services. In the absence of a written agency contract, an agency relationship can still be implied by the information provided by or the actions of the parties, so the owner can still receive the bill from the practice. All communication should be documented, including attempts to reach the owner or message left by the practice. When the life of the patient is on the line, however, the patient should be stabilized before spending time to verify the agency relationship.

Question 90

Personnel files are confidential, but in general and in most states, what is true of access to an employee’s personnel file? A. Employees may have access to their file, and have a right to copies of everything in their file. B. The employer controls the amount of time and location in which an employee can review their file. C. An employee’s immediate supervisor may have access to all documents in the employee’s file at any time. D. Personnel files are considered the property of the employee, even when in the possession of an employer.

Answer 90

Correct Answer: B. Explanation: The 5-Minute Veterinary Practice Management Consult, page 386. Most states grant an employee access to their personnel file, but they are not automatically guaranteed the right to have copies of everything in the file. An employee’s immediate supervisor may be granted access on a “need-to-know” basis for making employment-related decisions, but should not have access to employee information that is not job related. Personnel files are the property of the employer, and the employer can control the amount of time and location in which an employee can review their file.

Question 91

All of the following are examples of implied contracts, except A. A distraught client brings a pet into an emergency clinic after being hit by a car and allows the pet to be rushed to the back for assessment. B. An existing client brings in their pet for a drop-off appointment to be examined. C. The veterinarian discusses the treatment plan with an owner who then leaves the pet at the clinic for the remainder of the day. D. A farmer requested the veterinarian to come see a sick animal, but the farmer was called away before the veterinarian arrived.

Answer 91

Correct Answer: C. Explanation: Law and Ethics, page 295. In some situations, the courts can hold that a contract was implied by the actions of the parties. The arrival and subsequent handing over of a patient in crisis would indicate that the owner is accepting the treatment provided. The same holds for a drop-off appointment, where the client willingly brought in the pet for care but then left the pet at the facility. The farmer has invited the veterinarian to visit the sick animal, even if the farmer could not stay for the visit. The example of the client who approves a verbal treatment plan and then leaves the pet for care is not an example of an implied contract, because it is instead an ORAL contract, which is completely enforceable as well.

Question 92

In regards to confidentiality in the practice and management of veterinary medicine A. The Ethics of the AVMA states that a doctor of veterinary medicine should protect the personal privacy of clients, but does not address the obligation of the veterinarian's associates or staff to do the same. B. A client’s consent to release patient information is not consent to release financial information on the client. C. Courts have repeatedly extended physician-patient privilege statutes to veterinarian. D. Client consent is always necessary to release copies of a patient's medical record to a requesting governmental agency.

Answer 92

Correct Answer: B. Explanation: The 5-Minute Veterinary Practice Management Consult, page 400. The AVMA Ethics require the veterinarian and their associates or staff to protect the personal privacy of clients. Courts have repeatedly refused to extend physician-patient privilege statutes to veterinarians, and only a few states in fact have a veterinarian-client statute. A veterinarian served with a criminal case or governmental investigatory subpoena or order might not be allowed to tell his or her client, or obtain client consent. A client who is consenting to the release of patient information is not consenting to release their financial information.

Question 93

All of the following are branches of veterinary ethics except ``` Results: A. Descriptive veterinary ethics. B. Official veterinary ethics. C. Practical veterinary ethics. D. Normative veterinary ethics. ```

Answer 93

The answer is C. (Contracts and Benefits, pages 5-6) - Rather than ‘practical’ veterinary ethics, the fourth branch is Administrative veterinary ethics. (There are times when ethical actions are not practical, lol.) We will explore each one of these briefly.

Question 94

It would be impossible for a veterinary professional to recover damages if they are bitten by a patient, because they assume this risk when they enter this field. Results: A. True B. False

Answer 94

The answer is B. False. (Law and Ethics, page 81) - Although this is a generalized statement, a veterinary employee could possibly recover damages if they can prove that this animal has bitten before, and they did not receive prior warning from the owner.

Question 95

According to the Principles, veterinarians should primarily consider the needs of the patient. This includes ``` Results: A. Relieving disease. B. Relieving suffering and disability. C. Minimizing pain and fear. D. All of the above ```

Answer 95

The answer is D, all of the above. (Contracts and Benefits, page 384)

Question 96

According to the Principles, which of the following is true of the ethical responsibility to assist a patient in a life-threatening emergency? Results: A. It can include euthanasia to relieve suffering. B. If the client rejects euthanasia, there is no ethical obligation to provide further care. C. If a veterinarian is not available to give emergency care to his or her patients, there is no obligation to ensure there are other resources in the community. D. The veterinarian has no ethical obligation to refer the patient to another veterinarian even if they are not qualified to manage and treat the emergency.

Answer 96

The answer is A. (Contracts and Benefits, page 384)

Question 97

VCPR is an acronym meaning Results: A. Veterinary Client Provision Responsibility. B. Veterinarian-Client-Patient Responsibility. C. Veterinarian-Client-Patient Relationship. D. Veterinarian-Client-Pet Relationship.

Answer 97

The answer is C. (Contracts and Benefits, page 385) - The VCPR is the veterinarian-client-patient relationship.

Question 98

According to the Principles, when can the VCPR be terminated? Results: A. The client may terminate the VCPR only after their bill has been paid in full. B. The veterinarian may terminate the VCPR at any time as long as there is no ongoing medical condition. C. The veterinarian may terminate the VCPR even if the patient is receiving ongoing treatment. D. The client may terminate the VCPR only after a referral has been obtained if the patient is receiving ongoing medical care.

Answer 98

The answer is B. (Contracts and Benefits, page 386) - The client can end the VCPR at any time, whether or not they owe your practice money. You probably knew that one, unfortunately. If the patient is not receiving medical care, the veterinarian may also terminate the VCPR at any time, AND they have an obligation to use courtesy and tact when notifying the client that they no longer wish to serve the family. However, if there is an ongoing medical or surgical condition, the veterinarian is obligated to refer the patient to another veterinarian, AND provide care during this transition. This is important to realize in everyday practice. I have known veterinarians to call their state veterinary medical association for advice on a specific case when the practice is contemplating terminating the VCPR, just to be sure that the patient is not considered to be receiving ‘ongoing’ care. It can be trickier than it appears, especially with chronic illnesses.

Question 99

Fee Splitting is charging separately for different portions of a procedure, for example breaking down a surgical procedure to separate invoice items including monitoring, anesthesia, supplies, etc. Results: A. True B. False

Answer 99

The answer is False. (Contracts and Benefits, page 389) - Certainly you can break down a procedure, and likely you should to be tracking expenses and services in this manner. What is Fee Splitting then? It applies to consultations or referrals. This is when veterinarians enter into a financial arrangement where the referral veterinarian may give back a portion of the client’s payment to the referring veterinarian in gratitude for sending the patient to the practice. In some worlds this is known as ‘kick backs’. This is prohibited by the AVMA ethics. It is also unethical for a group of veterinarians to take any action which causes prices to be fixed or results in a agreed upon fee schedule.

Question 100

A contract is created when all of the following elements can be proved except ``` Results: A. The offer. B. A liability disclaimer. C. An acceptance. D. A meeting of the minds. ```

Answer 100

The answer is B. (Contracts and Benefits, page 42) Traditional contract law consisted of five elements, but today only three are necessary: the offer, an acceptance, and a meeting of the minds. Two of the previous elements are now integrated into this trio, so only these three need to be proved.

Question 101

The capacity of a person to enter in to a valid contract can be questioned in all of the following circumstances except when the person is ``` Results: A. A minor (the age of minority is determined by the state). B. Senile. C. Intoxicated or affected by drugs. D. All of the above ```

Answer 101

The answer is D. (Contracts and Benefits, pages 51-53) Capacity can be questioned in situations of minority, mental disability including senility, intoxication, or being “on drugs”. Does this mean that this type of client cannot enter into a contract? No. It means that the client could avoid or disaffirm the contract made while they are in these conditions. In other words, they may be able to invalidate their contract based on one of these reasons. Therefore it is prudent for the practice team to recognize these situations and be certain that the ‘meeting of the minds’ is as clear as possible.

Question 102

The Law of Agency refers to Results: A. Working through a recruiting agency representative when forming employment contracts. B. Contracts regarding care of a patient who has high monetary value, such as a race horse or show dog. C. Situations when the owners have given someone else the authority to act on their behalf of the pet. D. Circumstances of neglect or abuse where the veterinarian is acting on behalf of the welfare of the patient.

Answer 102

The answer is C. (Contracts and Benefits, pages 58-60) The law of agency comes in to play multiple times a week in most practices, when pets are brought in by the daughter, the estranged husband, the helpful neighbor, the dog sitter, or even another veterinary clinic. More often than not, there is no written agreement signed by the owner giving this person authority to make decisions on behalf of their pet. So agency is implied based on statements by and actions of the person with the pet. If possible, this agency should be verified with the owner of the pet.

Question 103

According to the Principles, when can veterinarians reveal confidences? Results: A. When required by law B. To protect the health and welfare of other individuals C. To protect the health and welfare of other animals D. All of the above

Answer 103

The answer is D. (Contracts and Benefits, page 385) You may recall when we discussed the veterinarian’s ‘motto’ that we said the welfare of the client and the safety of the public must be taken into consideration.

Question 104

Ordinary facts (not related to professional veterinary services) can be released without owner consent. These include all of the following except ``` Results: A. Name and age. B. Vaccination history and medications dispensed. C. Breed, species, and sex. D. patient history ```

Answer 104

The answer is D. (Law and Ethics, page 345) All of the other data is considered in general to be “ordinary facts.” But, the patient history, examination findings, diagnosis and full course of therapy should require owner consent before being released.

Question 105

Marketing means A. Giving information without implying an offer to sell. B. Efforts to encourage animal owners to make use of veterinary services and products to improve animal health. C. Forms of communication designed to attract clients. D. The same thing as the term advertising.

Answer 105

The Correct Answer is B. Explanation: Law and Ethics, pages 458, 466. Marketing is not the same thing as advertising, although advertising is often considered a form of marketing. The difference is the intention: advertising is intended to attract clients, while marketing intends to inform animal owners how to improve their pet’s health and welfare.

Question 106

Which one of these marketing methods is considered an indirect method? A. The type of signage in front of the facility. B. A yellow page ad that describes the services available at the practice. C. A booth at a local pet expo with hospital brochures and maps. D. Sending clients a newsletter highlighting new doctors on staff.

Answer 106

The Correct Answer is A. Explanation: Practice Made Perfect, page 240. Indirect marketing is anything that is part of the image intentionally or unintentionally conveyed by the hospital itself including the appearance of the building and signage. Direct marketing is more deliberate, and is used to introduce animal owners to specific services and recommendations. Therefore the yellow pages ad, hospital brochure, or practice newsletter all feature the services that the practice can provide to pet owners and are examples of direct marketing.

Question 107

Which one of these marketing strategies is considered an internal strategy? A. A yellow page ad that lists all the doctors or staff and their areas of interest. B. Participating in a Welcome Wagon program for new residents in the neighborhood. C. Placing an advertisement in the local Sunday paper. D. Hosting an open house and sending invitations to current clients.

Answer 107

The Correct Answer is D. Explanation: Practice Made Perfect, page 240. Internal marketing concentrates on existing clientele, with the goal of strengthening the relationship and increasing the client demand for veterinary services. External marketing introduces the practice to potential clients, such as a yellow pages ad, a Welcome Wagon service, or a newspaper advertisement. The Open House in this example is focused only on existing clients; therefore it is an example of internal marketing.

Question 108

The practice website A. Provides only internal marketing opportunities. B. Is not an economical form of advertising, but should be utilized by every veterinary practice. C. The domain name should be short, catchy, and easy to remember. D. The main goal is to attract a pet owner to the site the first time, not to foster repeat visitors.

Answer 108

The Correct Answer is C. Explanation: The 5-Minute Veterinary Practice Management Consult, page 84. A website provides both external and internal marketing opportunities, reaching current and potential clients. It is economical, and therefore is easily utilized by every practice. The domain name should be short and easy to remember, not necessarily the full long name of the practice. The main goal of a website is to attract repeat visitors, so content should be continually updated.

Question 109

Which of the following items would be considered optional for a hospital information brochure to include? A. Doctors’ names and specialties B. Professional organization memberships C. Extent or limitations of professional services offered D. Payment policies

Answer 109

The Correct Answer is B. Explanation: Practice Made Perfect, pages 105-106. A hospital brochure should always include the doctors’ names and specialties, professional services offered, and payment policies. If there is room available, it is optional to include professional organization memberships.

Question 110

All of the following are true of public relations with the exception of which answer? A. Sympathy letters and memorial donations are not considered a form of public relations. B. Public relations allow excellent segmenting and target marketing with limited reach and frequency. C. A newsletter is a good example whether it is produced entirely by the practice or purchased from a vendor and customized. D. Reminders are considered a form of public relations.

Answer 110

The Correct Answer is A. Explanation: Practice Made Perfect, pages 245-246. A public relations is any activity initiated by your hospital that is designed to create a positive image while communicating with present and potential clients. Sympathy letters and memorial donations are therefore considered a form of public relations, as well as reminders. A newsletter is also a good example, regardless of whether they are produced in-house or purchased from an outside source. It is true that public relations allow you to segment and target your market, with limited reach and frequency.

Question 111

In regards to client satisfaction surveys, which of the following is true? A. They should not be anonymous, to enable the manager to contact the client directly. B. Surveys can be mailed to clients or handed out in the office. C. Although the practice may not be in a position to change prices, it is still advisable to ask clients’ opinions about the current fees. D. Surveys should be given on a predetermined schedule and not at random

Answer 111

The Correct Answer is B. Explanation: Practice Made Perfect, pages 109-110. Client satisfaction surveys can be either mailed to clients or handed out in the office. It is thought that clients will be more honest with their responses if the survey is anonymous. It is not a good idea to ask about subjects that the hospital does not intend to change, such as fees. These surveys can be done during select time periods, or randomly throughout the year.

Question 112

Client retention is an important factor for any practice because A. The cost of attracting a new client is significantly higher than the cost of retaining an existing client. B. A certain percentage of clients will leave your practice for reasons you cannot control; therefore you must be concerned with those who leave for reasons that are within your control. C. The average companion animal practice loses 10 to 15% of its client base each year. D. All of the above.

Answer 112

The Correct Answer is D. | Explanation: The 5-Minute Veterinary Practice Management Consult, page 78. All of the choices are indeed true!

Question 113

A veterinary trade area A. Is the area within the practice where merchandise is located for clients to view before purchasing? B. Is data that is only used when planning the building of a start-up practice? C. should not be used in conjunction with developing a noncompete covenant for an associate. D. Is the geographic area where most of the practice’s clients live?

Answer 113

The Correct Answer is D. Explanation: The 5-Minute Veterinary Practice Management Consult, page 10. The veterinary trade area is the area from which the practice draws most of its clients and within which the practice’s market penetration is the highest, therefore where most of the clients live. This information is used when planning a start-up practice or deciding where to relocate or start up satellite operations, but also when developing non-compete covenants that are equitable and supported by data. It is also used when developing focused marketing plans.

Question 114

In regards to client grievances which of the following would apply? A. If the patient was referred, it is not advisable for the receiving veterinarian to become involved in a dispute between the client and the referring practice. B. Association Ethics Committees can impose financial penalties on veterinarians who are not members of their association. C. The concept of Peer Review Committees has been hampered by concerns of liability for activities and decisions by the committee members. D. A client is required to proceed with other forms of resolution before taking their case to the judicial system and a court of law.

Answer 114

The Correct Answer is C. Explanation: Law and Ethics, pages 123. When a problem arises with a referred case, it is always a good idea for the receiving veterinarian to communicate with the referring veterinarian to discover the facts, clear the air, and possibly inform colleagues of an impending problem. An association ethics committee has no authority to impose penalties on a veterinarian, and in fact they have no jurisdiction over practitioners who are not members of their association. Although the concept of Peer Review Committees has stalled over concerns of liability, the concept may return if state legislatures will develop statutes that exempt members of these committees from liability for their decisions. A client is not required to seek out any particular form of resolution, and some decide to start in the courtroom.

Question 115

Advertising,” means the same thing as marketing. A. True B. False

Answer 115

The answer is B, False. (Practice Made Perfect, page 237) - Advertising is just one activity that can be part of the broader meaning of marketing. According to Practice

Question 116

Indirect marketing techniques are less deliberate; this category includes nearly every activity in a veterinary practice. A. True B. False

Answer 116

The answer is A. True. (Practice Made Perfect, page 240) - Examples of Indirect marketing include: 1. The appearance of the practice parking lot and landscaping 2. The tone of voice and script used to answer the phone 3. The smell in the examination rooms and the clothing worn by the hospital staff.

Question 117

``` Your practice has undergone a face-lift...new landscaping, a new sign, and a fresh coat of paint. What forms of marketing have you used? A. Indirect and External B. Direct, Internal and External C. Indirect, Internal and External D. Indirect and Internal ```

Answer 117

The answer is C. - (Practice Made Perfect, page 240) - Improving the appearance of the practice is an example of an indirect marketing activity. Yet this improvement can affect your current clients (internal), as well as those pet owners who drive by and decide to try your lovely facility (external).

Question 118

``` You have put together an open house event at your practice to introduce a new doctor on staff, and sent invitations to your client database. What forms of marketing are involved in this activity? A. Indirect and Internal B. Direct and Internal C. Indirect, External and Internal D. Direct and External ```

Answer 118

The answer is B. - (Practice Made Perfect, page 240)

Question 119

The definition of a "shopped" item is an item that A. Clients are likely to compare the price between competing practices. B. Is required by pets and therefore purchased by clients no matter what the price. C. Can only be purchased by existing clients of the practice. D. Is sold at a price that only covers the cost to the practice.

Answer 119

The answer is A. - (Practice Made Perfect, page 242) - A “shopped” item is a product or service whose price is compared between competing practices by the consumer.

Question 120

Advertising is a paid announcement of services, whereas public relations involve free exposure to the community. A. True B. False

Answer 120

The answer is B. False. (Practice Made Perfect, pages 243-245) - It is true that advertising is a paid announcement; but public relations methods are not necessarily free!

Question 121

Public relations can involve a cost to the practice, whereas publicity is any unpaid communication conveyed through the media. A. True B. False

Answer 121

The answer is A. True. (Practice Made Perfect, pages 245-249) - Publicity can be a press release in the local newspaper, or a news release on television. These releases are written to inform the public about timely pet health issues. They should be designed to appeal to the specific local audience, and they help to position the practice as an authority on pet healthcare. To wrap up this discussion on marketing methods, we will touch on personal selling. This is a powerful marketing tool, yet most staff performs this without thinking of it as marketing.

Question 122

IF space allows, "Practice Made Perfect" also mentions that you can include in your brochure A. Local community and civic organization memberships, such as humane societies, Better Business Bureau, and Chamber of Commerce. B. Sponsorships and community involvement, such as FFA, 4-H, Girl or Boy Scouts, National Pet Week. C. Other items of interest: tours of facility available, staff available to talk to groups on animal care, etc. D. All of the above

Answer 122

The answer is D. All of the above. (Practice Made Perfect, pages 105-107)

Question 123

Honest responses are more likely if the survey is confidential. A. True B. False

Answer 123

The answer is A. True. (Practice Made Perfect, pages 109-110)

Question 124

If the client complaint involves an associate veterinarian, they are ultimately held responsible. A. True B. False

Answer 124

The answer is B. False. (Law and Ethics, page 111) - No matter if the complaint of the client involves a technician, receptionist, manager OR associate veterinarian, the ultimate responsibility lies with the practice owner

Question 125

A client cannot be reached while a patient is receiving hospitalized care. Which of the following situations represents the best mode of action and outcome? A. A life-threatening situation results in the death of a patient because the client was not available to approve the extra charges. B. A patient was given optional treatment in the absence of the approval of the owner, and the charges were applied to the invoice. C. The patient was experiencing a serious setback that needed immediate intervention, and the attempt to contact the client was documented in the record before proceeding. D. A client left specific instructions of ‘Do Not Resuscitate’, yet CPR and medications were given and charged for on the final invoice.

Answer 125

The answer is C. (Law and Ethics, page 116) - If your practice is attempting to follow what is believed to be the wishes of the client, then there will be a better outcome when the extra charges are explained to the client. It IS important to document every attempt to reach the client, and the progression of events.

Question 126

Which of the following is true of ethics committees? A. They have jurisdiction over any practitioner within their geographical area. B. They can require the veterinarian to perform or refrain from a particular action. C. They cannot impose penalties other than to recommend a suspension or dismissal from the veterinary association. D. They can comment on the fairness of a fee charged for a veterinary service.

Answer 126

The answer is C. (Law and Ethics, page 124) - The committee only has jurisdiction over their members in the association. They cannot make requirements of the practitioner, nor do they typically comment on fees since the marketplace determines veterinary fees in general. And no, the ethics committee cannot impose penalties other than to suspend or dismiss the veterinarian from the association.

Question 127

Which of the following is NOT an example of holding costs? A. Shrinkage from employee theft and shoplifting, and errors with paperwork and vendors. B. Regulatory compliance and documentation. C. Receiving and unpacking the items while verifying the packing list is correct. D. Property taxes paid on the inventory.

Answer 127

The Correct Answer is C. Explanation: The 5-Minute Veterinary Practice Management Consult, page 213. Shrinkage, property taxes, and regulatory compliance and documentation are all forms of holding costs. Other holding costs include insurance premiums paid on the inventory, space occupied in the hospital, and product wastage. Receiving and unpacking the items are part of the ordering cost of an item.

Question 128

The practice's general liability insurance policy would cover all of the following except a A. Accident that occurs on the premises. B. Incident where medical malpractice is in question. C. Injury that happens at the facility. D. Exposure related to a product on the premises.

Answer 128

The Correct Answer is B. Explanation: The 5-Minute Veterinary Practice Management Consult, page 374. General liability insurance covers the practice for accidents and injuries that occur on the premises, as well as exposure related to its products. It also protects the business entity in the event the insured causes bodily injury or property damage to others. Professional liability insurance, otherwise known as E & O (errors and omissions) insurance or medical malpractice insurance would cover a malpractice incident as long as it was not an intentional or dishonest act.

Question 129

The term safety stock means A. How much of the item will safely fit in the storage location within the hospital. B. The inventory cushion to prevent a stock-out of the item. C. The quantity of safety supplies in inventory at any given time. D. Instructions for the safest way to stock the item in the hospital.

Answer 129

The Correct Answer is B. Explanation: Practice Made Perfect, page 211. Safety stock is the inventory cushion or extra amount to keep on hand preventing a stock-out, which is when you run completely out of an item. This is excess of lead-time quantity, which is the amount of inventory that is expected to be used up from the time the order is placed to the time it arrives. The safety stock amount is extra and will help if a shipment is delayed or if the item is placed on back order.

Question 130

Medical information technology (IT) in veterinary medicine A. Improves slower than comparable improvements in medicine so IT advancements do not become obsolete for many years. B. Includes PACS, which allows storage of items electronically in a central database and retrieval from anywhere in the world. C. Includes Electronic Medical Records (EMR) is presently being used in 10-20% of veterinary practices.

Answer 130

The Correct Answer is B. Explanation: The 5-Minute Veterinary Practice Management Consult, pages 40-41. Improvements in IT are faster than improvements in medicine, and IT advancements can become obsolete in as little as one year. PACS is a central database that provides retrieval all over the world. Electronic medical records are presently only being used in less than 1% of practices and most practices utilize less than 20% of their software’s capability.

Question 131

FOB Destination means A. Freight is loaded at the place where it is shipped. B. Merchandise is invoiced when it reaches its final destination. C. The person at the destination point is the one responsible for any damages in shipping. D. The ownership of the product passes when merchandise is delivered to the buyer.

Answer 131

The Correct Answer is D. Explanation: Practice Made Perfect, page 215. FOB destination means that title or ownership of the product passes when the merchandise is delivered to the buyer, in this case the veterinary practice. FOB shipping point is when the ownership or title passes to the veterinary practice when the merchandise is delivered to the shipper. This is important because inventory becomes an asset of the practice as soon as title passes to the veterinary practice, regardless of whether the product is on the premises of the practice. The shipping documents should indicate FOB shipping point or destination. The hospital is liable for payment to the vendor when the title passes.

Question 132

In regards to medical records A. Notations should be typed or computer-generated; handwriting is not acceptable. B. Each entry should be signed with the employee’s full name. C. The use of correction fluid is permitted. D. Approved standard abbreviations and notations should be used.

Answer 132

The Correct Answer is D. Explanation: Practice Made Perfect, page 187. Medical records can be computerized or handwritten, but must be legible. Entries can be initialed rather than signed with the employee’s full name. When mistakes are made, correction fluid should not be used, nor should an error be erased or in any way obliterated. Instead, the mistake needs to be crossed out and the correct notation entered in the margin or in an addendum. The correction should be dated and initialed, with an explanation for the change. Approved standard abbreviations and notations should be used, and the AAHA standards are uniformly accepted in veterinary medical records.

Question 133

Which of the following AAHA Standard Abbreviation means both ears? A. OS B. AU C. OU D. AD

Answer 133

The Correct Answer is B. Explanation: AAHA Standard Abbreviations, pages 7-8, 18. AD is right ear, AU is both ears. OS is left eye, OU is both eyes. One hint for remembering these standard medical abbreviations is that “O” is the first letter of ophthalmology, which is the study of the eye. That leaves “A” for the ears, and there is the letter A in the words ears. “D” is right, and “S” is left, so if you are right handed you can start alphabetically from the right (or reverse if you are left handed). Then that just leaves “U” which means both, and the two sides of the letter can mean left and right, or both sides.

Question 134

According to the AVMA Principles of Veterinary Medical Ethics, which is true of medical records? A. Veterinarians are obligated to provide copies or summaries of medical records when requested by the client. B. Medical records are property of the identified pet owner. C. An associate veterinarian can copy or use the medical records with permission of the pet owner. D. Information within the medical record is confidential and must not be released under any circumstances.

Answer 134

The Correct Answer is A. Explanation: Contracts, Benefits, and Practice Management, page 387. Veterinarians are obligated to provide copies or summaries of medical records upon client request, and the veterinarian should secure a written request from the client. Medical records are the property of the practice and the practice owner, not the pet owner. This ownership does not extend to the associates in the practice, so they cannot copy or use the medical records without permission of the practice owner. The medical record is confidential, but can be released under certain circumstances such as a court order or consent of the client.

Question 135

Practice management support professionals or consultants in the fields of legal, financial, human resources, marketing and other areas are utilized for all these reasons except A. Expertise within the practice and its current staff is lacking. B. The current staff does not have sufficient time to devote to these areas, even if they have the knowledge. C. It is advisable to have a local consultant who is not familiar with veterinary medicine to provide an objective business opinion. D. Management recognizes the benefit of having third party opinions.

Answer 135

The Correct Answer is C. Explanation: The 5-Minute Veterinary Practice Management Consult, pages 24-25. The reasons that support professionals or consultants are hired include providing expertise that is lacking in the practice, providing services that the staff does not have sufficient time to pursue, and to provide a third party opinion. Although there may be local consultants in these various fields, support professionals who are familiar with the veterinary industry can provide expertise that may be unavailable at the local level.

Question 136

Which of the following is an example of a recommended internal control? A. Staff members who handle money should only be given one vacation day at a time. B. Daily incoming payments in the “cash box” can be used to pay for purchases under $20. C. Charge slips, manual invoices, or computer data forms should be serially numbered and missing numbers should be identified. D. The same staff member should retain their cashier position to reduce the likelihood of errors.

Answer 136

The Correct Answer is C. Explanation: Practice Made Perfect, page 142. Staff members who handle money should be required to take consecutive vacation days, ideally for a minimum of two weeks, with the intent that embezzlement schemes would be uncovered without the employee on the premises to keep control of their plan. There should also be multiple staff members cross trained for each position so that employees can rotate and no one employee gains complete control over any one financial step. Expense payments should be paid by business check or from a petty cash fund, not from the direct daily receipts that come into the front office cash box. Financial forms should be serially numbers so that missing numbers can be investigated to determine if there are any internal control issues.

Question 137

Inventory is specifically defined as all goods owned and held for sale or use in the regular course of business. A. True B. False

Answer 137

The answer is A, True. (Practice Made Perfect, page 195) - During the inventory process, there is paperwork that is generated and collected from the multiple steps. For a single order placed, there is typically a purchase order, shipping document, vendor invoice, and vendor statement that may even reflect multiple orders over a time period.

Question 138

``` The person who often has ultimate responsibility for comparing purchase orders with the final invoice to ensure that the vendor did indeed charge the correct price to the hospital before paying the bill is the A. Manager B. Bookkeeper C. Accountant D. Owner ```

Answer 138

The answer is B, the bookkeeper, if you are fortunate enough to have one of these people around your practice! (Practice Made Perfect, page 152)

Question 139

Inventory control is the process of placing purchase orders for the correct items and ensuring that you receive the items ordered at the price quoted. A. True B. False

Answer 139

The answer is B, False. (Practice Made Perfect, page 195) - While this is a component of the inventory process, this is not inventory CONTROL. Instead, inventory control is the process whereby the need to maintain sufficient inventory to meet the needs of the hospital is weighed against the cost of carrying inventory.

Question 140

``` The price of 6 identical items is $30.00 total. Sales tax and shipping costs total $6.00. What is the unit cost of each item? A. $5.00 B. $5.50 C. $6.00 D. $8.00 ```

Answer 140

The answer is C, $6.00. (Practice Made Perfect, pages 195-196) - Add the price of all items, $30.00, plus taxes and shipping to get a total of $36.00. Then divide by the number of items (6), and you reach $6.00 as a UNIT cost for this item. I bet you did not even need those calculators this time! Is that the only cost associated with the purchase of this item? Of course not! Next you have the ordering cost. There are multiple factors involved in the ordering cost.

Question 141

``` Ordering costs can account for as much as ____ to ____ of the total unit cost. A. 5-10% B. 10-15% C. 15-20% D. 20-25% ```

Answer 141

The answer is C, 15-20% of the total unit cost. (Five Minute Consult, page 213)

Question 142

``` Holding costs can account for as much as ____ to ____ of the total unit cost. A. 2-8% B. 8-20% C. 5-10% D. 21-30% ```

Answer 142

The answer is B, 8-20%. (Five Minute Consult, page 213) - Combining the ordering and holding costs for an item, the average can be between 25%-40% of the total unit cost, depending on the amount of time the item is held, the success of managing theft and pilferage, and the efficiency of purchasing. This exploration helps to define why inventory control is such an important part of managing a practice, and its profitability!

Question 143

Which of the following is TRUE of the "80-20 Rule"? A. The concept is attributed to Vilfredo Pareto. B. It refers to 80% of inventory is used to generate 20% of the sales. C. It means that 20% of items account for 80% of the costs involved in inventory.

Answer 143

The answer is A. (Practice Made Perfect, page 209) - The 80-20 Rule is also known as Pareto’s Law. Vilfredo Pareto was an Italian economist, who theorized that 20% of the inventory accounts for 80% of sales or use. In practice, this means that you should determine what makes up that 20% of items, and give them special consideration. The remaining 80% should not be forgotten, but should not be overstocked either.

Question 144

``` The average turnover in veterinary hospitals tends to be around ____ times per year. A. 4 B. 6 C. 8 D. 10 ```

Answer 144

The answer is B, Six (6). (Practice Made Perfect, page 211) - Although there are different opinions, such as 4-8 turns, 8-10 turns, or even 10-12 turns as recommended in the Five Minute Consult, having 6 inventory turns is more common.

Question 145

FOB shipping point means that ownership, or title, passes when merchandise is delivered to the buyer, the veterinary practice. A. True B. False

Answer 145

The answer is B, False. (Practice Made Perfect, page 215) - FOB shipping point means that title passes to the practice when merchandise is delivered to the SHIPPER. FOB destination is when title passes when the merchandise is delivered to the practice, its final DESTINATION.

Question 146

``` In veterinary practices, a ____% markup prices the product very close to the break-even point. A. 40% B. 120% C. 240% D. 400% ```

Answer 146

The answer is A, 40%. (Practice Made Perfect, page 216) - Although the markup range can be anywhere from 40%-400%, anything less than a 40% markup will result in the practice losing money on that item.

Question 147

``` Most small-animal practices aim to maintain a profit margin of at least a ____% return. A. 6% B. 8% C. 10% D. 12% ```

Answer 147

The answer is D, .12% return. (Practice Made Perfect, page 217)

Question 148

Which of the following is true of medical record organization? A. Source-oriented medical records (SOMR) consist of data from various sources, ordered chronologically by office visit or period of hospitalization. B. Problem-oriented medical records (POMR) are not arranged with regard to chronological event. C. The SOAP format is found in source-oriented medical records. D. The two types, SOMR and POMR, cannot be combined in one medical record.

Answer 148

The answer is A. (Practice Made Perfect, pages 176-177) - Problem-oriented medical records (POMR) ARE arranged chronologically, but according to each identified health problem instead of only by date. It is within this type of POMR format that you find the SOAP structure. The two types, SOMR and POMR, can certainly be combined, and this is often the most efficient way of organizing the medical record.

Question 149

What of the following is true of the SOAP format found in problem-oriented medical records? A. S = Subject, or the patient name and/or identification number. B. O = Objective, which is more the facts of the case than opinions. C. A = Action, or the desired treatment plan to take. D. P = Prognosis, or the expected outcome for the patient

Answer 149

The answer is B. (Practice Made Perfect, page 177)

Question 150

``` A medication is documented as being administered to a patient IM, SID. What does this mean? A. In the mouth, several times a day B. Intramuscular, seven times daily C. In the mouth, once daily D. Intramuscular, once per day ```

Answer 150

The answer is D, intramuscular, once per day. (AAHA Standard Abbreviations, pages 14 and 21)

Question 151

A medication is being administered BID, OU. What does this mean? A. Both morning and night, in the left ear. B. Twice per day, in both eyes. C. Twice per day, in the right eye. D. Three times a day, in both ears

Answer 151

The answer is B, twice daily in both eyes. (AAHA Standard Abbreviations, pages 8 and 18)

Question 152

Bookkeeping involves all of the following except A. Interpretation of the reports generated by financial data. B. Recording business data in a prescribed manner. C. Maintenance of the income and expense journals. D. Performing tasks such as writing checks to vendors and summarizing the bills that have been paid.

Answer 152

The Correct Answer is A. Explanation: Practice Made Perfect, pages 149-150. Bookkeeping and accounting are closely related activities; however bookkeeping involves recording business data in a prescribed manner and the work is primarily clerical. These duties include maintaining financial data in journals and performing tasks such as writing checks and summarizing paid bills. Accounting is more involved in the interpretation of the reports that are generated from this financial data entered by the bookkeeper.

Question 153

``` The most common level of assurance for a CPA to provide a veterinary practice involves assessment and adjustments to bookkeeping data, and is called a(n) A. Review. B. Audit. C. Compilation. D. Financial report. ```

Answer 153

The Correct Answer is C. Explanation: Practice Made Perfect, pages 157-158. Compilation of financial reports is the lowest level of assurance, and the most common type of engagement for a veterinary practice to have with a CPA firm. The next highest level is a Review, and involves a higher level of analytical review of various accounts and transactions. The highest level of assurance is the Audit, which involves an independent review of the accounting records.

Question 154

Which of the following is true of cash basis accounting? A. Expenses are recorded when the bill asking for payment arrives in the mail. B. The balance sheet will not show the level of accounts receivable from clients. C. Accurately matches expenses with the revenues produced in incurring those same expenses. D. Trends are more easily identified and these financial statements provide a good managerial tool.

Answer 154

The Correct Answer is B. Explanation: Practice Made Perfect, pages 166-167. The basic formula to remember is this: IF income is measured when cash is received AND expenses are measured when cash is spent, then the practice is operating on a CASH basis. IF income and expenses are measured when the transactions occur (regardless of when the cash actually changes hands), then the practice is operating on an ACCRUAL basis. Therefore if an expense is recorded when the bill arrives, this is not CASH basis accounting. Likewise accounts receivables (outstanding bills that have not been paid) will not be shown on the balance sheet during CASH basis accounting, because the CASH has not been collected. Accrual basis accounting more accurately matches expenses with the revenue produced during the same period, and trends are more easily identified in accrual basis accounting.

Question 155

When monitoring the finances of a veterinary practice A. The most important thing to watch is the bank balance. B. The financial statements for one month should be completed by the end of the next month. C. It is important to compare one month’s reports side by side with the previous 11 months’ reports. D. The only reports that need monitored are the profit and loss statement and the balance sheet.

Answer 155

The Correct Answer is C. Explanation: The 5-Minute Veterinary Practice Management Consult, page 200. The bank balance may indicate the money left over at the moment, but it does not help to plan for the future or avoid potential financial problems. Financial statements should be monitored, but they should not become stale before being reviewed; therefore they should be available by the middle (not the end) of the following month. It is important to compare 12 months of reports side by side, to note trends and plan accordingly. The profit and loss statement and balance sheet should be monitored, but there is a lengthy list of other valuable information that should also be collected such as average transaction charges and client visits, just to name a few.

Question 156

Which of the following is true of percentage-based compensation for employed veterinarians? A. Emphasizes the medical aspects of veterinary practice, but not the business aspects. B. Improves doctors’ motivation to give accurate client financial estimates and understand the practice’s fee schedule. C. Encourages percentage-based employees to engage in charitable activities such as free initial examinations for shelter adopted pets. D. Results in less time-consuming bookkeeping and easier handling of accounts receivable.

Answer 156

The Correct Answer is B. Explanation: Contracts, Benefits, and Practice Management, pages 120-122. Percentage-based (aka. production-based) compensation for employed veterinarians does emphasize both the medical aspects and business aspects of operating a veterinary practice. However, veterinarians paid on percentage may be less willing to participate in charitable activities that do not directly generate income. This type of compensation also results in tedious bookkeeping and difficult distribution of accounts receivables both owed and collected. An advantage to percentage- or production-based compensation is that veterinarians strive to give accurate estimates to assure the client is willing and able to pay the final invoice, and the veterinarian typically gains a better understanding of the practice’s fee schedule.

Question 157

When developing a credit-management policy, which of the following statements is not true? A. Provide a client financial estimate that gives a range of expected total costs. B. Use a credit application form that requests the client’s personal bank and account number. C. Call the client’s employer to verify current employment and length of employment. D. Determine repayment schedules based on the practice’s needs, and not in consultation with the client.

Answer 157

The Correct Answer is D. Explanation: Law and Ethics, pages 296-299. Estimates are only an estimate of the cost that could be incurred, and should involve a range of expected total costs. The credit application form should request the client’s personal bank and account number, as well as their driver’s license number and two personal credit references with phone numbers and addresses. The client’s employer should be phoned to establish employment and length of employment, and the client’s home phone number can be called to assure it is in service and the number given is accurate. Repayment schedules will be more likely to succeed if the client’s needs are also taken into consideration, and not just the practice’s needs. The client may actually be more generous in their suggestion of repayment.

Question 158

Budgets are a critical management tool A. For larger practices, but are not necessary in smaller practices. B. Where the numbers come first, and then the plans are developed last. C. Because they affect all business disciplines including marketing, customer service, finance, and human resource management. D. But should be developed solely by the practice owner.

Answer 158

The Correct Answer is C. Explanation: The 5-Minute Veterinary Practice Management Consult, page 200. Budgets are tools for practices of all types and sizes, not just large practices. During the budgeting process, the plans should come first, and the numbers should follow. One of the most important elements of a successful budget is staff participation and buy-in, so the budget should not be developed by solely the practice owner. Budgets do affect every aspect of the practice including marketing, customer service, finance and human resource management.

Question 159

When collecting overdue payments from clients, which of the following is not recommended? A. Contact the client at work if the payment is over 60 days late. B. Do not ask about the status of the pet at home. C. Be prepared to offer payment over time options. D. If a downward adjustment is made, acknowledge the reason in writing.

Answer 159

The Correct Answer is A. Explanation: Practice Made Perfect, pages 134-135. When calling a client about an overdue payment, the conversation should not include inquiries about their pet’s status but should remain focused on the overdue account. There may need to be additional options offered such as payment over time, and if a reduction in the amount is agreed upon then the client should acknowledge the reason in writing. This acknowledgement should make it clear that the compromise does not represent a diminution in the value of the professional services incurred. The client should be called as soon as the account is overdue, but calling a client at work can be considered harassment and should be avoided.

Question 160

In veterinary practices, a ____% markup prices a product very near the break-even point. A. 40% B. 70% C. 100% D. 200%

Answer 160

The Correct Answer is A. Explanation: Practice Made Perfect, page 216. Although product markup can range from 40% to 400%, in veterinary practices a 40% markup will price a product very close to the break-even point. This is true because there are ordering and holding costs that can comprise 40% of the purchase price of an item, so this 40% markup would not result in any profit during a sale (therefore the practice would merely break even on this sale).

Question 161

Which of the following is true of imprest? A. It is the amount of cash that goes into the bank deposit at the end of the day’s closing procedure. B. It is the amount of cash that remains in the petty cash fund for each day. C. Its primary use is to pay for small cash purchases for the practice. D. Its primary use is to make change for cash transactions that occur during daily business

Answer 161

The Correct Answer is D. Explanation: Practice Made Perfect, page 139. Imprest is the small amount of money that is made available to those staff members who need to make change for cash transactions that occur during business hours. Only the amount of cash taken in during actual transactions is deposited in the bank and the remaining same amount of imprest remains available for the next business day. This money is not to be used to make purchases; that money is called petty cash, which is a different source of money altogether.

Question 162

Accounting is defined as the art of measuring, communicating, and interpreting financial activity. A. True B. False

Answer 162

The answer is A, True. (Practice Made Perfect, page 147) - It is difficult at times to remember that all of these activities are indeed, accounting. In contrast, what is the definition of bookkeeping? Is this the same thing as accounting, or not?

Question 163

Bookkeeping is defined as A. The generation of financial reports from the accounting information. B. The process of recording business data in a prescribed manner. C. The task of filing accounting notebooks so they are easily located when needed. D. Maintaining financial records in a secure location to provide adequate protection of the information.

Answer 163

The answer is B. (Practice Made Perfect, page 149) - Bookkeeping is indeed the process of recording business data in a prescribed manner.

Question 164

``` What is the term used for the implementation of methods to prevent loss of revenue due to the actions of an employee or employees? A. Embezzlement protection B. Segregating responsibilities C. Accounting audit D. Internal control ```

Answer 164

The answer is D, internal control. (Practice Made Perfect, page 141) - This is discussed in more detail on pages 141-144 of Practice Made Perfect.

Question 165

The two types of equities include A. The rights of creditors and the liabilities. B. The owner’s equity and the associate’s equity. C. The rights of creditors and owner’s equity. D. Liabilities and credits.

Answer 165

The answer is C. (Practice Made Perfect, page 163) - The “right of creditors” is commonly known as the liabilities of the practice. Liabilities and Owner’s Equity are the two types of equities. Thus, the rights of creditors (liabilities) and the owner’s equity are the two correct answers.

Question 166

``` Which of the following is NOT an asset of the practice? A. Accounts receivable B. Inventory C. Bank loan D. Covenants not-to-compete ```

Answer 166

The answer is C. (Practice Made Perfect, pages 163-164) - A bank loan is a note payable, or a written promise to pay a defined amount at a future date. This is not an asset of the company, but the other choices are… accounts receivable represents money due to the practice, inventory is tangible property owned by the practice, and a covenant not-to-compete for an associate is an intangible asset. Remember, an asset is any economic resource that can be expressed in monetary terms, or basically anything the practice owns (with the non-compete, the practice “owns” the ability of the associate to bring in revenue for the practice, for example).

Question 167

Which of the following is NOT a liability of the practice? A. Payroll taxes B. Land C. Wages due for hours worked but not yet paid D. Maintenance contracts

Answer 167

The answer is B. (Practice Made Perfect, pages 163-164) - Land is an asset of the company, not a liability. Liabilities are present obligations resulting from past transactions that require the practice to pay money, provide goods, or perform services in the future. So payroll taxes must be paid on time, wages for hours worked must eventually be paid as well, and maintenance contracts are an obligation to pay a certain amount at a future date. Owner’s equity is the interest of practice owners in the assets of the practice. Basically, it is the amounts invested by the owners plus the profits that have been retained in the business and are therefore owed to the owners.

Question 168

The accounting equation is A. Assets + Liabilities = Owner’s equity. B. Assets = Liabilities + Owner’s equity. C. Owner’s equity – Liabilities = Assets.

Answer 168

The answer is B. (Practice Made Perfect, page 164) - Assets = Liabilities + Owner’s equity. Remember, the accounting equation should always remain in balance. Therefore, when a transaction is recorded, it will affect both sides of the equation so that they remain constantly balanced with each other.

Question 169

The balance sheet is a statement reflecting values that have accumulating during two points in time, whereas the income statement reflects a particular date. A. True B. False

Answer 169

The answer is B. False. (Five Minute Consult, page 136) - Actually, just the opposite is true. The balance sheet summarizes financial data for a specific date, and the income statement reflects a period of time between two different dates.

Question 170

The balance sheet summarizes the assets, liabilities, and owner’s equity; the income statement matches revenue generated with related expenses during a period of time. A. True B. False

Answer 170

The answer is A, True. (Practice Made Perfect, page 165) - Yes indeed, the balance sheet can be called the “statement of assets, liabilities, and owner’s equity”. Likewise, another name for the income statement is the “statement of operations”, or the profit and loss statement. It is affectionately known as the P&L, for short. Know the definitions of these financial statements! There is another type of financial statement mentioned in the text, and that is the cash flow statement. As suggested, this report details the flow of cash in and out of the practice. This differs from the income statement, because not all revenue is taken in as cash, and not all expenses are paid with cash! There is a nice little illustration of how these statements relate to the passage of time on page 165 of Practice Made Perfect (PMP), Figure 8.1 Financial Statement Time Line. Let us touch on the two different types of accounting methods, accrual and cash basis. Are you familiar with the difference? This is how they are explained on page 166 of PMP: IF income is measured when cash is received, AND expenses are measured when cash is spent, THEN the practice is said to be operating on a CASH basis. IF income and expenses are measured when the transactions occur (regardless of physical flow of cash), THEN the practice is said to be operating on an ACCRUAL basis. Here is a good example of how these two methods differ… the treatment of accounts receivable.

Question 171

``` Which type of accounting method would show accounts receivable on the balance sheet? A. Cash B. Accrual C. Both cash and accrual D. Neither cash nor accrual ```

Answer 171

The answer is B, Accrual. (Practice Made Perfect, page 166) - With cash basis accounting, the balance sheet only reports the cash actually received… accounts receivable is money owed to the practice but not yet paid, so it is not reported…yet. But the accrual method would reflect your accounts receivable.

Question 172

The payroll company acts as an attorney-in-fact for the veterinary practice, so late notices and other tax related problems with payroll would be handled by the payroll service. A. True B. False

Answer 172

The answer is A, True. (Practice Made Perfect, pages 154-155) - This is a huge benefit, but it should be noted that if the payroll company skips town, the veterinary practice is still responsible for taking care of their own business.

Question 173

Revenue is the cash payments received by the business for transactions that day. A. True B. False

Answer 173

The answer is B. False. (Practice Made Perfect, page 120) - Actually, revenue is the price of goods sold and services rendered during a given period of time, even if actual collection has not yet occurred. Revenue would include cash received and other forms of payment rendered, but also the amount charged on account or represented by credit extended by the practice

Question 174

``` A ____% markup prices the product very close to the break-even point. A. 10% B. 20% C. 30% D. 40% ```

Answer 174

The answer is D. 40%. (Practice Made Perfect, page 216)

Question 175

``` An item is $4.00 cost to the practice, and they apply a 200% markup. The cost to the client becomes A. $4.50 B. $8.00 C. $12.00 D. $16.00 ```

Answer 175

The answer is C. $12.00 or triple the cost.

Question 176

``` In the "altered" breakeven formula: S = F + V + P, what does P stand for? A. Price B. Profit C. Product cost D. Production cost ```

Answer 176

The answer is B. Profit. (Practice Made Perfect, page 216) - This traditional breakeven formula is ‘altered’ because we factor in a profit margin when determining the price for our goods and services. And you will recall I am sure, that if our small animal practice is like most others, we are aiming for a 12% profit margin or return. Now since I recommended that you read the calculations for full absorption analysis on pages 217-218 of PMP during out last real time session together.

Question 177

The full absorption analysis is a method to calculate A. Price of a product based only on out-of-pocket expenses associated with one specific sale. B. Pricing a product where the multiplier of 1.4 is adequate to generate a return on investment. C. Calculation of the product price where the sale of goods is subsidized by other service items. D. Product price that considers all the other costs of managing the practice that has to be supported by sales.

Answer 177

The answer is D. (Practice Made Perfect, page 217) - The full absorption analysis means that all factors are “absorbed” into the calculation of a product price, including operating expenses, staff contribution to sales, time meeting with clients, time to prepare the product, etc.

Question 178

Imprest petty cash is A. A predetermined amount that is available daily for making change when receiving client payments. B. Money set aside to pay for minor expenditures by the manager or owner. C. A fund to provide refreshments to clients as needed at the discretion of the staff. D. A small amount of cash used by the staff to purchase emergency items as needed.

Answer 178

The answer is A. (Practice Made Perfect, page 139) - Imprest is the amount that is available to make change for transactions during business activity. This fund is not to be used for any other purpose, and when the cash received that day is extracted to make the bank deposit, the ending balance of imprest should be the same as what was available at the beginning of that day.

Question 179

A chart of accounts is organized by A. Name of the income, expense, asset, liability, or equity category. B. A numeric code that is associated with each account name. C. An invoice code that is used for client transactions as well as accounting data.

Answer 179

The answer is B. (Practice Made Perfect, page 161) - A numeric code is associated with each account name for the particular income, expense, asset, liability or equity category.

Question 180

The balance sheet is a statement reflecting values that have accumulating during two points in time, whereas the income statement reflects a particular date. A. True B. False

Answer 180

The correct answer: B

Question 181

``` In the "altered" breakeven formula: S = F + V + P, what does P stand for? A. Price B. Profit C. Product cost D. Production cost ```

Answer 181

The correct answer: B

Question 182

``` Which type of accounting method would show accounts receivable on the balance sheet? A. Cash B. Accrual C. Both cash and accrual D. Neither cash nor accrual ```

Answer 182

The correct answer: B

Question 183

Revenue is the cash payments received by the business for transactions that day. A. True B. False

Answer 183

The correct answer: B

Question 184

The accounting equation is A. Assets + Liabilities = Owner’s equity. B. Assets = Liabilities + Owner’s equity. C. Owner’s equity – Liabilities = Assets.

Answer 184

The correct answer: B

Question 185

``` Which type of accounting method would show accounts receivable on the balance sheet? A. Cash B. Accrual C. Both cash and accrual D. Neither cash nor accrual ```

Answer 185

The correct answer: B

Question 186

``` A prescription is filled for 30 tablets of prednisone 5 mg. The minimum per pill charge is $0.10, the dispensing fee is $5.00, and the minimum prescription fee is $12.00. How much will the client get charged for this prescription? A. $3.00 B. $8.00 C. $12.00 D. $15.00 ```

Answer 186

The answer is C. This information is in your assigned reading for week 6, in Blackwell’s 5-Minute Consult page 327. Regardless of what you set your typical mark-up for prescription drugs, a minimum per pill fee will also apply (in other words, the really inexpensive medication will end up with a higher mark-up, up to a minimum point). A dispensing fee is also included in the price to cover labeling and preparation costs. Typically this is from $7 to $12, according to Blackwell’s text. But, on top of those considerations, there is a minimum prescription fee that typically ranges from $8 to $14 according to the text. You calculate the price of each pill times the number of pills, add the dispensing fee, and this becomes your price to the client; UNLESS this calculation lands below your minimum prescription fee. Then, the minimum prescription fee will override that calculation. Even if you send a few tablets out the door, you should charge a minimum price to cover the medication plus the supplies and work involved in preparing the prescription.

Question 187

``` Inventory of controlled substances should be conducted A. monthly. B. annually. C. biennially. D. only if a shortage is suspected. ```

Answer 187

The answer is C. biennially. This information is found on page 110 of The Complete Veterinary Practice Regulatory Compliance Manual (AKA, Compliance Manual from this point forward). This means, every two years. Although it is highly recommended that a physical inventory is conducted much more often, the DEA only requires inventory to be performed every two years. Likewise, the documentation of this inventory count should be retained for 2 years.

Question 188

``` What is considered the major cause of death for pet animals? A. Cancer B. Car accidents C. Congenital disease D. Euthanasia for behavior problems ```

Answer 188

The answer is D. This information is presented by Jim Wilson at the conclusion of his chapter on Veterinary and Animal Ethics, on page 49 of the text Law and Ethics. His point during this discussion is that as the status of animals in society increases, veterinary medicine will need to adjust and realign our commitment to the needs of pets and clients. Although euthanasia for behavior problems is the major cause of death for pet animals, the science of behavior is just now coming into the spotlight during our generation as owners and managers in veterinary medicine.

Question 189

The Summary of Work-Related Injuries and Illnesses (OSHA Form 300 A) must be posted A. always, and remain constantly updated and current. B. from January 1 of the following year until March 1 of that same year. C. from February 1 of the following year until at least April 30 of that same year. D. only if the employer has less than 10 employees.

Answer 189

The answer is C. from February 1 to April 30 of the following year. The complete information on this topic can be found in the Compliance Manual, page 12. Remember, only employers with 11 or more employees need to complete this OSHA Form 300 A, as well as OSHA Form 300 which is the Log of Work-Related Injuries and Illnesses.

Question 190

The Employee Retirement Income Security Act (ERISA) requires employers to provide employer-sponsored retirement benefits. A. True B. False

Answer 190

The answer is B, False. This information is provided on page 82 of Practice Made Perfect (PMP), as well as the website recommended in the study guide for week 3. ERISA does NOT require retirement benefits to be provided to employees. However, if an employer chooses to provide such benefits, ERISA imposes regulations to protect the rights of participants.

Question 191

``` Under the basic law of negligence, a veterinarian’s greatest risk for liability involves an injury to a(n) A. client. B. patient. C. employee. D. volunteer on staff. ```

Answer 191

The answer is A. The answer is found on page 132 of Law and Ethics. This question falls under the category of risk management, and appeared in the assigned reading for week 6. Keep in mind, this question involves BASIC liability. However, cases involving veterinary PROFESSIONAL liability originate under the law of malpractice, and can result from injuries, death, or escape of client’s pets.

Question 192

Under the Family and Medical Leave Act, if an employee fails to return to work after the period of leave due to the serious health condition that required the leave, the employer can recover the health insurance premium paid during the period of leave. A. True B. False

Answer 192

The answer is B. False. The reference for this information is the website provided in the study guide for week 3. An employer can only recover their portion of the health insurance premiums paid during FMLA leave IF the employee fails to return for a reason OTHER than the serious health condition that required the leave. Remember, in class we talked about if the employee just happens to find another job while they are out on FMLA leave, then the employer can recover those premiums.

Question 193

``` According to Blackwell’s 5-Minute Consult, which of the following people should be included in preparing a budget? A. Veterinarians B. Practice Manager C. Receptionists D. All of the above ```

Answer 193

The answer is D. This discussion is found in Blackwell’s Five Minute Consult on page 200. Everyone including the technicians should be involved in preparing the budget. Although this may make the preparation process take longer, the end result is usually better because each person provides their own unique insight. Also their participation increases the staff buy-in for the implementation of the budget.

Question 194

Liquidity is defined as the ability to quickly convert assets to cash or to pay a liability. A. True B. False

Answer 194

The answer is A. True. On page 496 of Blackwell’s 5-Minute Consult, there is a great discussion on determining a practice’s worth. Although this was not specifically assigned during this course, as I have mentioned, VHMA expects that you have read all pages of all the texts on their recommended reading list. (Just a suggestion!)

Question 195

According to the AAHA Standards of Accreditation for Anesthesia, a patient under general anesthesia for dentistry should be provided a qualified A. practice team member’s presence. B. team member plus at least one piece of monitoring equipment. C. team member plus at least two pieces of monitoring equipment including pulse oximeter. D. team member, respiratory monitor, pulse oximeter, blood pressure monitor, continuous ECG monitor, and esophageal stethoscope.

Answer 195

The answer is B. AAHA’s Standards require that any patient under general anesthesia, including during dentistry or radiographic evaluation, be provided a qualified team member and at LEAST one piece of monitoring equipment. The possible equipment was listed in choice D: respiratory monitor, pulse oximeter, blood pressure monitor, continuous ECG monitor, or esophageal stethoscope.

Question 196

According to the AAHA Standards of Accreditation for Patient Care, animal-holding areas such as cages, runs, and exercise areas should be all of the following EXCEPT A. escape-proof. B. easily cleaned. C. adequate in relation to the normal caseload. D. designed to reduce noise level.

Answer 196

D. designed to reduce noise level. AAHA wants your animal-holding areas to be secure, escape-proof, in good condition, easily cleaned, and adequate in relation to the normal caseload. AAHA does not specify that animal-holding areas should be built to minimize noise level; however, in their safety standards, they do mention that noise should be minimized throughout the practice in general.

Question 197

``` The economic order quantity (EOQ) formula recognizes three specific costs incurred in drug and professional supply inventory: the unit cost, the ordering cost, and the A. holding cost. B. delivery cost. C. sales tax cost. D. personnel cost. ```

Answer 197

The answer is A. holding cost. EOQ details can be found on pages 213-214 of Practice Made Perfect.

Question 198

All of the following are unlawful questions to ask during an interview EXCEPT A. where were you born? B. have you ever been arrested? C. do you have a disability? D. do you have experience in the U.S. Armed Forces?

Answer 198

The answer is D. The reference for these important interview questions can be found on pages 49-50 of Practice Made Perfect. As you probably know by now, you can’t ask questions about race, national origin, or birthplace. You CAN ask about convictions, but not arrests; being arrested does not necessarily mean that the candidate committed a crime. You cannot ask forthright about disabilities, mental or physical. You can, however, present the ever-important job description and ask the candidate if they can perform the job with or without reasonable accommodation. You may ask about experience in the U.S. Armed Forces or state militia, but you may not inquire if they received a dishonorable discharge, and you may not ask about service beyond the U.S. or state military.

Question 199

According to the AVMA Principles of Veterinary Medical Ethics, the VCPR may be terminated under all of the following conditions EXCEPT by the A. veterinarian when there is no ongoing medical condition. B. veterinarian when the client is told that the pet should be referred a specialist for continuing care. C. veterinarian even if there is an ongoing medical condition, if they provide care during transition to a referral veterinarian. D. client when the family decides to remove their pet from hospitalized care.

Answer 199

The answer is B. This discussion can be found in Contract and Benefits, page 386. Remember, the veterinarian can refer a patient to another veterinarian, but should not terminate the actual medical care being administered to the patient if the animal has an ongoing medical or surgical condition. Telling the clients they are referred and should move on is not enough; the patient must be in the care of a new veterinarian before “ethically” the VCPR is terminated. Keep in mind, on this topic ethics is concerned about the well being of the patient; it is not concerned about the business of the practice. It is easy to get the two confused and while perhaps they should not be separate concepts in real life, remember to stick with the facts you’ve read for this exam!

Question 200

The practice’s marketing efforts are supplemented with client education materials provided by drug vendors. What type of marketing is this? A. Indirect, if it does not have the name of the practice on the materials. B. External, if placed out in the lobby of the practice. C. Direct, if the materials discuss specific pet health issues that can be addressed by your practice. D. Internal, if handed out at community events.

Answer 200

The answer is C. The discussion of marketing methods is found in Practice Made Perfect, on page 240. Let’s talk about the “easy” category first. Internal marketing is aimed at current clients, so handing out brochures at a community event will be external because it is focused toward non-clients. Since having brochures in your lobby will target your existing clients, not the general public, it would be considered an internal method. Now the second category; indirect is more of the “atmosphere” or “attitude” reflected by your practice- the building’s appearance, the staff’s demeanor, the reputation in the community. Direct methods are more deliberate and introduce pet owners to your specific services. Therefore as long as your practice is offering the product or services that are represented by this vendor brochure, you could use this as a method of direct marketing. There is no doubt that this can be a matter of interpretation, and some facts must be supplied or implied in order to make determinations.

Question 201

Client surveys may be more effective and valuable if they can be written, distributed, and analyzed by a third party. A. True B. False

Answer 201

The answer is A. True. In Practice Made Perfect on page 252, it is mentioned that a trained professional can be used to perform these client surveys on behalf of the practice. It is thought that this third party involvement will lead to a more reliable picture of the hospital’s performance, and provide more useful decision-making information from the survey process.

Question 202

Without the express permission of the practice owner, it is unethical for a veterinarian to remove, copy, or use the medical records or any part of any record. A. True B. False

Answer 202

The answer is A, True. According to the AVMA Principles of Veterinary Medical Ethics, page 387 of Contract and Benefits. This would apply to an associate veterinarian who wants to utilize the medical record of a patient. Remember, this record is the property of the practice and the practice owner, not necessarily the doctor who attended the patient.

Question 203

Which of the following is NOT true of the I-9 Form? A. It demonstrates compliance with the Immigration Reform & Control Act of 1986 and subsequent amendments. B. The employee must complete Section 1 of the form within 3 business days of commencing duties. C. The required documents must be reviewed by the business within 3 business days of the staff member beginning work. D. The forms should be maintained for the longer of 3 years after the date the staff member begins work, or 1 year after the staff member’s departure.

Answer 203

The answer is B. This information can be found in the Compliance Manual on pages 117-118. Actually, the employee must complete Section 1 of the I-9 form PRIOR to commencing duties, even though the representative of the business (i.e. owner or manager) has 3 days to review the documents and complete Section 2 of the form.

Question 204

Under the Occupational Safety and Health Act, business owners do have the right to A. require a Compliance officer to obtain a warrant before entering or inspecting the business. B. know the name of the complainant if the inspection is due to an alleged employee complaint. C. be present during an OSHA officer’s interview with staff members. D. consult with an attorney or advisor only after an inspection when the results are divulged.

Answer 204

The answer is A. This information can be located on page 5-6 of the Compliance Manual. Although it may start things off on the wrong foot with OSHA, the employer certainly does have the right to require a warrant. However, they do not have the right to know the name of the complainant, only that the inspection is a result of a complaint and the nature of that complaint. The employer cannot be present during interviews with staff members, but they CAN consult an attorney or advisor at any point before, during, or after the inspection.

Question 205

``` As listed in Practice Made Perfect, which of the following posters does NOT have to be displayed according to the Department of Labor? A. FLSA and Minimum Wage B. FMLA C. OSHA D. ERISA ```

Answer 205

The answer is D. The Employee Retirement Income Security Act (ERISA) does not have to be displayed in the practice. 
This information can be found on page 83 of PMP. Two other posters not listed that DO have to be displayed are the OSHA Job Safety and Health Protection requirements, and the Employee Polygraph Protection Act.

Question 206

Which of the following is TRUE of the Employee Polygraph Protection Act? A. Prospective employees who will handle controlled substances can be asked to submit to a polygraph test only after receiving the Department of Labor’s approval. B. An employer may suggest indirectly that an employee’s job will be more secure if they agree to take a polygraph test. C. An employer may deny employment to a prospective employee if they refuse to take a lie detector test. D. None of the above is true.

Answer 206

The answer is A. This information is located on page 83 of PMP. Actually, the first choice IS true. An employment candidate whose job requires the handling of controlled substances can be asked to submit to a lie detector test, but ONLY in very limited circumstances and with the DOL’s approval. (It is not at all a common occurrence in our profession, and typically applies to pharmaceutical companies and such.)

Question 207

When is client consent NOT necessary for the release of medical records? A. When a referral veterinarian is requesting the prior history from the referring veterinarian. B. When a family member is calling to request a health update on a pet. C. When the breeder of the pet needs to verify a congenital defect. D. When public health authorities have a concern involving human health reasons.

Answer 207

The answer is D. Information on confidentiality can be found in several places, including PMP pages 187-188, Law and Ethics pages 344-346, and the AVMA Principles of Veterinary Medical Ethics. In general, the only time you do NOT need client consent to release medical records is when there is a court order involved, or a concern for the safety and welfare of other pets, people, or the public.

Question 208

Which of the following shows a WRONG match between the regulatory agency and the focus of regulation? A. FDA = animal foods and animal health products B. USDA = vaccines and biologicals C. EPA = systemic insecticides for animals D. DEA = controlled substances

Answer 208

The answer is C. The breakdown of the regulatory agencies and their focus is provided on pages 215-216 of Law and Ethics. Remember, the EPA only regulates the use of topical insecticides, or those applied systemically on inanimate objects. If the insecticide is to be injected or administered by mouth to the patient, for example, the FDA has jurisdiction over the product. Again, think: EPA = environment = external FDA = food and DRUG = systemic

Question 209

All of the following are examples of implied contracts, except A. a distraught client brings in a pet that has been hit by a car into an emergency clinic and allows the pet to be rushed to the back for assessment. B. an existing client brings in their pet for a drop-off appointment for a physical examination. C. the veterinarian discusses a treatment plan with an owner, who then signs an estimate and leaves the pet for approved tests. D. a farmer requests the veterinarian to come see a sick animal at the barn, but the farmer was called away before the veterinarian arrived.

Answer 209

The answer is C. Jim Wilson further explains express versus implied contracts on page 45 of Contracts and Benefits. We discussed implied versus express contracts on the discussion boards as well, so hopefully this makes a little more sense now. Basically all of those scenarios are IMPLIED contracts, because they all describe situations where the client willingly but silently ‘requests’ medical care for their pet, whether a document was signed or not. However, in the situation where the client and veterinarian discuss the plan and the owner signs the treatment estimate, this has become an EXPRESS contract.

Question 210

All of the following should be included in a job description EXCEPT A. description of accountability. B. list of duties including physical duties and expectations. C. description of necessary skills and qualifications. D. salary range for the position.

Answer 210

The answer is D. Money is not listed in the complete explanation of job descriptions provided on pages 41-42 of PMP. All of those items should be in a job description, EXCEPT the information on salary or wage.

Question 211

``` What are the two types of sexual harassment? A. Express and Quid pro quo B. Environmental and Quid pro quo C. Situational and Quasi pro D. Implied and Express ```

Answer 211

The answer is B. For a brief exploration of sexual harassment, visit PMP on pages 76-77. The two types of sexual harassment are environmental and quid pro quo. As you recall, quid pro quo means “something for something” in Latin, so it is easy to identify. For example, if an employee refuses to submit to a boss’s sexual advances, they lose a promotion. (This is more likely “nothing for nothing”.) The other type of sexual harassment is environmental, and this occurs when unwelcome sexual conduct results in an intimidating, hostile, or offensive working environment. This is easier to spot, but more difficult to treat: sexually offensive jokes, posters, comments, actions, etc.

Question 212

``` Calculate the wage for an employee who worked 46 hours at a regular pay rate of $12.50 per hour. During this pay period, the employee used 8 hours of paid vacation time. A. $475.00 B. $575.00 C. $612.50 D. $687.50 ```

Answer 212

The answer is B. PMP touches on FLSA on pages 72-73. The important thing to remember is that overtime is paid for over 40 hours WORKED in a given workweek. The vacation time was not “worked”, so this employee does not get any overtime during this pay period. Therefore, the answer is straight hourly wage ($12.50) multiplied by 46 hours.

Question 213

ADEA is the Americans with Disabilities in Employment Act. A. True B. False

Answer 213

The answer is B. False! Page 77-79 of PMP ADEA is actually the Age Discrimination in Employment Act! Be sure you slow down long enough to really absorb the acronyms that may be thrown at you during the examination.

Question 214

The Americans with Disabilities Act applies to employers with 20 or more employees. A. True B. False

Answer 214

The answer is B. False. PMP gives you this basic information on pages 72-83. ADA applies to employers with 15 or more employees! Now, in contrast, the ADEA or Age Discrimination in Employment Act (right?) applies to employers with 20 or more employees.

Question 215

The Consolidated Omnibus Budget Reconciliation Act (COBRA) protects the employee’s investment in their employer’s 401 k program. A. True B. False

Answer 215

The answer is B. False. In this same section of PMP, you’ll see that COBRA provides extension of group health plan coverage for employees who leave their employment. There may be other circumstances when an employee is eligible for COBRA benefits.

Question 216

An employee who experiences a reduction in hours can take a COBRA extension of group health plan coverage for up to 18 months, and 29 months if someone in the family is disabled. A. True B. False

Answer 216

The answer is A. True! Other circumstances for COBRA extension include the death or divorce of spouse or parent that held the coverage, or change of status as the dependent.

Question 217

Which of the following can you ask to see or acquire during an employment interview? A. Photograph to attach to the candidate’s application. B. Birth certificate. C. Driver’s license. D. Copies of professional licenses related to the position.

Answer 217

The answer is D. Refer to pages 49-50 of PMP. You can and should receive copies of professional licenses, and then you should verify with the licensing organization that the license is indeed current and valid. However, a photograph or birth certificate has no bearing during an employment interview. As for driver’s license, you may ask if the candidate possesses a valid driver’s license if this pertains to the position; however, you may not require that they produce a driver’s license for you to see. Remember, you don’t want there to even be the illusion that you are gathering information that could cause you to discriminate against a candidate. Driver’s license could reveal the candidate’s age, which has no bearing on the job... particularly if they are over 40 years old and protected by ADEA.

Question 218

OSHA and Safety Training should occur with a new hire after they have had a few weeks on the job to learn what their duties encompass. A. True B. False

Answer 218

The answer is B. False. See the Compliance Manual pages 18-19 for more information about safety training. OSHA and safety training should occur BEFORE the employee is exposed to the hazard. For all employees, training should also occur as soon as a hazard becomes known to the business.

Question 219

``` The practice has obtained an item that the owner intends to sell as a "loss leader"; therefore the owner is only interested in breaking even on the cost. The unit cost is $12.00. What price would be charged to the client for this item? A. $12.00 B. $13.44 C. $15.00 D. $16.80 ```

Answer 219

The answer is D. ``` This information can be found in PMP, where on page 196 it discusses the ordering and holding costs, and on page 216 it discusses product markup and breakeven points Let me explain. A loss leader, as mentioned in the question itself, is priced at the break-even point. These items are strategically priced to bring in clients, in the hopes that they will stick around and buy more goods and services. As far as the price calculation for this item, we learned in class that: A 40% markup prices a product very close to this break-even point.. In applying a 40% markup to this item we obtain a price of $16.80. Another way to remember this break-even point is to recall that ordering and holding costs can add up to 25% - 40% of the unit cost. Sticking with the high end of this range, the minimum mark-up should always be 40%. ```

Question 220

The Central Supply Concept of inventory is also known as Ration-Based Inventory. A. True B. False

Answer 220

The answer is A. True. On pages 206-207 of PMP, there is a lengthy discussion of this concept. Basically, this inventory concept is typically used by larger facilities where the bulk of the supplies are stored in a central location. Then smaller quantities are located out in the working areas of the practice. When an area runs out of an item, they can get more supplies from the central location. This concept can work well in a small practice as well. The theory is also based on minimizing employee theft and waste, since smaller quantities of an item are available for pilferage.

Question 221

``` The money that is available at the front desk for making change during client payment transactions is called A. petty cash. B. imprest petty cash. C. change drawer. D. change fund. ```

Answer 221

The answer is B. Imprest petty cash is discussed on page 139 of PMP. This “change money” is officially known as imprest petty cash, and should ONLY be used for the purpose of making change for client transactions involving cash. The cash received that day is taken out for the bank deposit at the end-of-day closing, and the same amount of imprest petty cash is then left over and available for the next day’s business.

Question 222

The chart of accounts is the system used to file and retain medical records of active patients in the practice. A. True B. False

Answer 222

The answer is B. False. See page 161 of PMP. As you will easily recall from last week, the chart of accounts is for accounting! It is the skeleton or outline of numerical codes that are attached to categories of expenses and revenue for the purpose of consistent recording of financial data.

Question 223

``` A practice manager is reviewing all financial data recorded from April 1- June 30 of the current year. The manager is likely interpreting data from what type of report? A. Balance sheet B. Profit and loss statement C. Cash flow statement D. Ledger ```

Answer 223

The answer is B. See page 165 of PMP if this is a concept that you need to review further. The P&L statement (profit and loss) is also known as the income statement, and reports data accumulated between two points in time. The balance sheet, however, is the summary of the assets, liabilities, and owner’s equity at a particular date in time. Cash flow statements only represent cash, and the question said “all” financial data. The ledger is where the bookkeeper initially documents the transactions, which are then used to compile the financial statements listed above.

Question 224

The Family and Medical Leave Act applies to employers with 15 or more employees. A. True B. False

Answer 224

The answer is B. False. FMLA applies to employers with 50 or more employees. (PMP, page 79)

Question 225

Animal tissues removed during routine surgical procedures, such as spays and neuters, are not considered biomedical waste. A. True B. False

Answer 225

The answer is A. True. (See page 23 of the Compliance Manual) Only dead animals or animal parts that are infected with diseases communicable to humans are considered biomedical waste.

Question 226

Controlled substances are classified according to their potential to be stolen and resold. A. True B. False

Answer 226

The answer is B. False. (See page 180 of PMP) Controlled substances are classified according to their potential for abuse.

Question 227

If an employer is concerned about the health of a pregnant employee’s fetus, the employer may terminate the employee if they do not resign voluntarily. A. True B. False

Answer 227

The answer is B. False. (See page 77 of PMP and the appropriate web site.) The employer is only responsible for treating the pregnant employee the same way that any employee with a temporary disability would be treated, under the Pregnancy Discrimination Act. The health of the fetus is the responsibility of the pregnant woman.

Question 228

According to the AAHA Standards of Accreditation, medical records should utilize the Problem-Oriented method. A. True B. False

Answer 228

The answer is A. True. (See page 176-177 of PMP.) The Problem-Oriented method is arranged chronologically according to each identified health problem. SOAP format is utilized to record the patient’s information in this problem-oriented method.

Question 229

The acronym SOAP represents Subjective, Objective, Action, and Prognosis. A. True B. False

Answer 229

The answer is B. False. | Page 177 of PMP

Question 230

The employee policies handbook details the various duties in the veterinary practice, and is also called an Operations Manual. A. True B. False

Answer 230

The answer is B. False. (Pages 31-35 of PMP) Those duties ARE detailed in an operations manual, but this is NOT the same thing as the employee policies handbook. The policies handbook deals specifically with information pertinent to employment within the hospital.

Question 231

OSHA applies to employers with 11 or more employees. A. True B. False

Answer 231

The answer is B. False. (See page 23 of the Compliance Manual) Don’t let this one fool you! Remember, every employer must provide a safe workplace, regardless of how many or few workers are on site. But, only employers with 11 or more employees must fill out OSHA Forms 300 and 300 A, concerning injuries and illnesses.

Question 232

According to the ADA, employee medical information should not be kept in the regular personnel file but should be in a separate medical file and remain accessible only to designated officials. A. True B. False

Answer 232

The answer is A. True.

Question 233

Marketing gives information that implies an offer to sell. A. True B. False

Answer 233

The answer is A. True. (See page 237 of PMP) This is one definition of marketing, and is easy to understand if you remember how much we discussed client education or the “giving of information” as fundamental to our marketing methods in veterinary practice.

Question 234

Employees who are not scheduled to work the day of a staff meeting should not be paid for attending. A. True B. False

Answer 234

The answer is B. False. (See page 30 of PMP) All employees should be paid their regular rate for attending staff meetings, whether they are on duty that day or not.