The final exam: National survey tests business acumen of veterinary students; more study needed

NATIONAL REPORT — When it comes to business, veterinary students are pulling a C-minus average, according to a national survey.

Wait until after the boards? Maybe not. A new survey says that veterinary students need to polish and expand their business knowledge. Dani McVety, (Class of 2009) University of Florida, coordinated the online business survey.

The findings underscore the need for better business education for veterinary students, reports Dani McVety (Class of 2009) from the University of Florida's College of Veterinary Medicine.

"I think (the results represent) where we are when it comes to running a business or especially managing our student debt. That's not to say we can't learn, though. It simply means we have to put some extra effort into it."

Fun with numbers: Dani McVety (Class of 2009) from the University of Florida says business should be the fun part of practice, which is one reason she led this survey.

McVety led the online survey with the guidance of adviser Dr. Colin Burrows and received 994 responses from students at nearly all the veterinary schools in the United States. The goal simply was to evaluate their business knowledge. "I know that if I am going to be successful in life, I am going to have to know some basic business concepts," McVety says. "That's why I thought this would be an interesting project. I also think that business should be the fun part of practice, to have a clear idea of where your hard work is going."

Here are some of the survey's questions, answers and results:

1. (True or false) A veterinary practice's gross income is the amount of money made after subtracting various expenses.

Correct: 78.2 percent of respondents

Incorrect: 21.8 percent

Correct answer: False

2. Which of the following is not an accurate statement about a balance sheet?

• A balance sheet shows that assets = liabilities + owner's equity

• The balance sheet shows the value of a company's assets on a specific date.

• The balance sheet displays where money originated and how it was spent.

Correct: 39.2 percent of respondents

Incorrect: 60.8 percent

Correct answer: The balance sheet displays where money originated and how it was spent.

3. (True or false) As a licensed veterinarian, you are invited to fly across the country to interview for a position as a new associate. You purchase a plane ticket and pay for a hotel room and a few meals. These expenses are deductible on your tax return.

Correct: 53.4 percent of respondents

Incorrect: 46.6 percent

Correct answer: True

4. (True or false) Instead of cash, a client pays her bill with rare, valuable stamps from her prized stamp collection. The market value of the stamps is included in income.

Correct: 48.4 percent of respondents

Incorrect: 51.6 percent

Correct answer: True

5. Your last year's income was $100,000 and places you in the 30 percent tax bracket (wow!). Your accountant told you that you have $20,000 in deductions (disregarding any limitations on deductions). What is the proper equation for calculating how much tax you owe?

Correct: 48.6 percent of respondents

Incorrect: 51.4 percent

Correct Answer: ($120,000 - $20,000) x 30% = $24,000

6. The acronym IRA stands for:

Correct: 76.9 percent of respondents

Incorrect: 23.1 percent

Answer: Individual Retirement Account

7. Studies show that the single most important factor in preventing negligence claims is:

Correct: 75 percent of respondents

Incorrect: 25 percent

Answer: A good doctor/client relationship

8. (True or false) A doctor working under a professional corporation cannot be held personally liable to his or her clients or patients.

Correct: 82.6 percent of respondents

Incorrect: 17.4 percent

Correct answer: False

10. (True or false) Student-loan interest is not deductible.

Correct: 60.3 percent of respondents

Incorrect: 39.7 percent

Correct answer: True

Nearly half the veterinary students taking the poll answered seven out of 10 questions correctly. Better poll scores were associated with age and graduation year.

In addition, prior business education and Veterinary Business Management Association membership positively influenced scores, McVety says.