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EGEL Plus MVZ Communication, Professionalism, Practice Management & Wellbeing: practice questions

EGEL Plus MVZ · Mexico · CENEVAL

Original practice questions written to the published syllabus · not past papers
10worked here, free
26written to this exam in this subject
1syllabus units

What this subject covers

The non-technical skills that decide whether a veterinarian succeeds: talking to clients, consent, teamwork and leadership, the business of practice, clinical governance and looking after oneself.

In the exams: NAVLE communication 8% and professionalism, practice management and wellness 7%; RCVS Day One competences (Personal Leadership, Reflective Relationships); AVMA COE competencies

What EGEL Plus MVZ asks from it

EGEL Plus MVZ (Mexico)

Administration items on costs, margins, break-even and record keeping for farm and practice businesses.

Where the 26 questions fall

How our questions for EGEL Plus MVZ spread across the units of Communication, Professionalism, Practice Management & Wellbeing. Difficulty: 6 easy, 14 medium, 6 hard.

Practice business and finance26

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Practice business and finance · easy

In a profit and loss account, gross profit is:

  1. Revenue minus the cost of goods sold
  2. Revenue minus all expenses and tax
  3. Revenue minus staff wages and salaries
  4. Cash received minus cash paid out
Answer and working

A. Revenue minus the cost of goods sold

Gross profit is revenue less the direct cost of the drugs, consumables and services sold. Subtracting all expenses and tax gives net profit; cash in minus cash out is cash flow, not profit.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

2 · Practice business and finance · medium

In ABC inventory analysis, class A items are:

  1. The most numerous items, regardless of their annual usage value
  2. Items past their expiry date that are waiting for safe disposal
  3. Items stored alphabetically so the dispensary can find them quickly
  4. The few items with most of the annual stock value
Answer and working

D. The few items with most of the annual stock value

ABC analysis ranks items by annual usage value; class A is the small number of items carrying most of the value and deserving the tightest control. Class C is the many items of low total value.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

3 · Practice business and finance · easy

The services marketing mix extends the 4Ps (product, price, place, promotion) with which three elements?

  1. Profit, partnership and packaging
  2. Planning, publicity and positioning
  3. Patients, premises and policies
  4. People, process and physical evidence
Answer and working

D. People, process and physical evidence

The 7Ps add people, process and physical evidence. In a practice, the receptionist, the booking process and a clean waiting room are part of what the client buys.

Further reading: Booms & Bitner services marketing mix

4 · Practice business and finance · medium

In a SWOT analysis, a new corporate clinic opening nearby is:

  1. A weakness, because it reveals a lack inside the practice
  2. A threat: external, could take clients
  3. A strength, because competition raises standards in town
  4. An opportunity, because the new clinic will refer cases
Answer and working

B. A threat: external, could take clients

Strengths and weaknesses are internal; opportunities and threats are external. A new competitor is an external factor that could harm the practice, so it is a threat.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

5 · Practice business and finance · medium

A clinic has fixed costs of 45,000 a month. The average consultation fee is 50 and the variable cost per consultation is 20. How many consultations a month does it need to break even?

  1. 900
  2. 1,500
  3. 2,250
  4. 643
Answer and working

B. 1,500

Break-even = fixed costs ÷ (price − variable cost) = 45,000 ÷ 30 = 1,500. Dividing by the fee alone gives 900 and ignores variable costs; dividing by the variable cost gives 2,250; adding fee and cost gives 643.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

6 · Practice business and finance · hard

A practice's cost of goods sold is 240,000 a year; stock was 50,000 at the start of the year and 30,000 at the end. Using average stock and a 365-day year, how many days of stock does it hold on average?

  1. 76 days
  2. 46 days
  3. 6 days
  4. 61 days
Answer and working

D. 61 days

Turnover = 240,000 ÷ 40,000 = 6; days on hand = 365 ÷ 6 = 60.8 ≈ 61 days. Opening stock alone gives 76 days, closing stock alone 46 days, and 6 is the turnover, not days.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

7 · Practice business and finance · medium

A practice uses 8 vials a day of an injectable, the supplier's lead time is 5 days, and the practice keeps a safety stock of 20 vials. At what stock level should it reorder?

  1. 60 vials
  2. 40 vials
  3. 28 vials
  4. 160 vials
Answer and working

A. 60 vials

Reorder point = daily usage × lead time + safety stock = 8 × 5 + 20 = 60. 40 omits the safety stock, 28 adds one day's use to the safety stock, and 160 multiplies usage by the safety stock.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

8 · Practice business and finance · medium

A practice has revenue of 1,200,000 and total expenses, including tax, of 1,080,000. What is its net profit margin?

  1. 11.1%
  2. 90%
  3. 10%
  4. 1,000%
Answer and working

C. 10%

Net margin = net profit ÷ revenue = 120,000 ÷ 1,200,000 = 10%. Dividing by expenses gives 11.1%; 90% is expenses as a share of revenue; 1,000% is the ratio inverted (revenue ÷ net profit).

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

9 · Practice business and finance · hard

A practice had 2,000 active clients at the start of the year. At the end it had 2,100 active clients, of whom 400 were new during the year. What was its client retention rate?

  1. 85%
  2. 81%
  3. 105%
  4. 20%
Answer and working

A. 85%

Retained clients = 2,100 − 400 = 1,700; retention = 1,700 ÷ 2,000 = 85%. Dividing by the year-end total gives 81%; 105% is the year-end count divided by the starting count (5% net growth), which hides the loss of 300 clients; 20% is the new-client rate.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

10 · Practice business and finance · hard

An item sells for 100 and costs 60. The practice offers a 10% discount. By how much must sales volume rise just to keep total gross profit the same?

  1. 10.0%
  2. 11.1%
  3. 33.3%
  4. 25.0%
Answer and working

C. 33.3%

Gross profit per unit falls from 40 to 30, so volume must rise by 40 ÷ 30 − 1 = 33.3%. 10.0% assumes a one-for-one effect; 11.1% is 100 ÷ 90 − 1, which ignores cost; 25.0% is 10 ÷ 40, the share of old profit lost, not the volume needed.

Further reading: Shilcock & Stutchfield, Veterinary Practice Management

Ten here, 26 in the app. The Laisha app has every practice question we have written to EGEL Plus MVZ in this subject, marked as you go, with timed papers, a jump-to-unanswered list and a certificate when you pass at 70 per cent.

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Read the subject

Communication, Professionalism, Practice Management & WellbeingThe full study manual, free EGEL Plus MVZFormat, sections and how it has changed

More EGEL Plus MVZ practice

Milk & Meat Hygiene, Food Safety & Public HealthVeterinary Epidemiology & ZoonosesLivestock Economics, Marketing & Business ManagementApplied Animal Nutrition I: Ruminants

Communication, Professionalism, Practice Management & Wellbeing for other exams

NAVLE · USA / CanadaRCVS Statutory Membership Examination · UKAustralasian Veterinary Examination, formerly the National Veterinary Examination · Australia / New Zealand

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