PCM Exam 3 (Final)

annual 340B savings

$50,000,000

Roth IRA contribution limit

$6000

what is the FIFO method

(First-in, First-out): This method assumes inventory is sold in the order it was acquired

Quality control

Confirms components and final products meet predetermined requirements Testing occurs alongside processes Correction of defects and/or blocking release of products

disadvantages of buying an existing pharmacy

Could have a bad reputation Could be old shit, bad inventory etc employees could suck

professional employee exemption

Doing work that requires advanced knowledge gained through special instruction Doing work that requires invention, imagination, originality or talent

outside sales employee exemption

Ensuring sales Obtaining orders/contracts for services Typically away from employer's place of business

specifics about business type 6 (independent business owner for an umbrella company)

Examples: insurance, relator ◦Medium to low risk ◦Business practices defined for you ◦Complete training exists normally

advantages of buying an existing pharmacy

Existing customer base Existing good-will No lag time to profit Less spending bcs you have inventory Already have people that work for you

system aspects of burnout

External environment: health care industry, laws, regulations, standards, societal values -> Health care org: leadership and management, governance, organizational rewards and benefits -> frontline care delivery: care team members -> work system factors: job demands vs job resources -> individual mediating factors (personality, coping strategies, resilience, social support) -> outcome of either burnout or professional well-being -> consequences for: patients, clinicians, HCO, and society

what are the 3 methods of accounting for inventory?

FIFO, LIFO, WAC

process

How? Examples Staff wash their hands and follow other required practices before compounding Prescriptions are adequately reviewed INR is maintained in desired range

gross pay vs net pay

Income before taxes and deductions are taken versus income after taxes and deductions have been taken

Advantages of starting a new pharmacy

-Greater job security -Greater financial reward -Freedom to practice pharmacy your way -Become an important member of community -You can expand and grow when the opportunity arises -You see the results of your actions and decisions

disadvantages of starting a new pharmacy

-Intensity and effort are greater -Psychological stress for employees' welfare -Long hours, fewer holidays -Risk of financial failure -Difficult to plan for time off -Market value can fluctuate due to uncontrollable circumstances -Planning a succession can be difficult

Plan

-Multidisciplinary team (those affected by the process) -Tools •Brainstorming •Root-cause analysis -e.g. Fishbone diagram to identify causes of all current variance/problem Failure mode affect analysis (FMEA)- identify variances to process before they occur (SeverityXOccurenceXdetection=risk priority number) 0=low,10=high Pareto chart- helps identify causes of problems, follows 80/20 rules, helps focus energy to leading causes of problems

Title VII of the Civil Rights Act of 1964

-Prohibits employers from hiring, refusing to hire, firing, or laying off an individual because of their race, color, religion, sex or national origin

family medical leave act (FMLA)

-Protects unpaid leave to qualified employees •Birth or adoption of a child •Serious health condition by employee or family member •Support immediate family member on military duty

describe 340B purchasing

-Qualifications 1. Disproportionate share hospital 2. Critical access hospital -Discounted prices (50% AWP) -Must have qualified outpatients to utilize -Program designed to stretch federal dollars to care for the indigent, but non-indigent patients can qualify -Audited by HRSA -Penalties for noncompliance

what is the most common method for accounting for inventory in pharmacy?

LIFO

specifics about business type 5 (buy a franchise)

Lower risk = higher cost! -Usually instant credibility ◦Locked into franchise's way of doing business

administrative employee exemption

Managing office or operations of employer or employer's customers Exercising discretion and independent judgment in significant matters

executive employee exemption

Managing the Enterprise Directing the work of two or more employees Hiring and firing employees

total tax burden

Marginal Rate = Fed 24% + GA 6.0% = 30% social security tax= 6.2% too 60 - 36.2% = 38$

key part of domain 8: leadership

Members of pharmacy leadership maintain effective working and personal relationships with leaders from other areas throughout the organization.

timekeeping and pay nonexempt employees

Overtime eligible Private sector - 1.5x rate for >40 hr/7days Public sector -1.5x OT compensatory time Paid less than $455/week or $23,660/year Does not meet any of the exemption test* Paid an hourly rate

Timekeeping and pay Exempt employees

Overtime ineligible Paid at least $455/week or $23,660/year Meets one of the exemption test* Paid on fixed salary basis

partnership

Owner's Person Liability- Unlimited Taxation- partner's personal tax returns Cost of formation- low ability to raise capital- moderate

sole proprietorship

Owner's Person Liability- Unlimitied Taxation- proprietor's personal tax returns Cost of formation- very low ability to raise capital- low

Corp

Owner's Person Liability- limited Taxation- dependent on S vs C corp Cost of formation- moderate ability to raise capital- high if C

LLC

Owner's Person Liability- limited Taxation- profits and losses flow through to owners Cost of formation- moderate ability to raise capital- high

highly compensated employee exemption

Paid >$100,000/year Regularly performs at least one the duties of a exempt executive , administrative, or professional employee

PDSA cycle

Plan, Do, Study, Act

equitable

Provide care that does not vary because of personal characteristics such as age, gender, ethnicity, geographic location, and socio-economic status

Why do we measure quality

Quality healthcare = Safe Healthcare Quality healthcare = Cost Effective Healthcare Quality healthcare = Satisfied Patients

define matching

Requires that all expenses directly associated with the production of revenue be reported in the same period on the income statement

outcome

Results? Examples: Patient satisfaction is in the 90th percentile No health care associated infections No "preventable" serious adverse drug events

after tax retirement plan

Roth IRA comes after tax, but you do not pay money on the earnings

drug at AU pharmacy that is most at shortage?

SWFI

what are the 5 rights of medication administration

-Right patient -Right drug -Right dose -Right route -Right time

Do

-Usually a "Pilot" project is done first •One or two nursing units •A specific shift -Full scale change could result in wasted resources if change has negative or neutral effect

jobs that are not likely to cause burnout have:

-Variety of tasks and skills -Job autonomy or control -Meaning of job -Performance feedback -Task completeness these all lead to increased well-being

things to ensure medication safety

1. CPOE -Reduces errors associated with handwritten orders -Order sets standardize care 2. bedside barcode scanning 3. safety huddles 4. medication use evaluations 5. Compounding regulations (USP 795, 797, 800)

Employee vs. Independent Contractor

1. Employee Paid hourly or by salary (W-2) Uses employers materials, tools and equipment Typically works for one employer Continued Relationship (at will or defined term) Employer decides manner and means of performing work Employer determines work performed 2. Independent contractor Paid upon completion of project (1099) Provides own materials Works for multiple clients Temporary relationship (until project complete) Contractor decides manner and means of performing work Contractor and client agree to project scope

other quality tools

1. GAP analysis 2. Bechmarking 3. medication use evaluation

debt to income ratio

A standard tool that calculates whether a borrower will have difficulty meeting his or her loan repayment obligation. it will affect how much money a loan company/bank will give you impacts BUYING POWER

standard deduction

A stated amount that you may subtract from adjusted gross income instead of itemizing your deductions

highest rates of entrepreneurship

AZ, TX, CA (these are states)

definition of conservatism

Accounting estimates, evaluations, and opinions should neither overstate or understate the company's business activities; fair and reasonable so decisions will not be made from unrealistic financial statements Avoid Risk If unsure; understate assets, overstate liabilities, understate revenue, overstate expenses

TAX CREDIT IS BETTER THAN A

TAX DEDUCTION

fair credit reporting act (FCRA)

background reference checks must comply

you are guaranteed a return on your investment with a ___________________, but not with ____________

bond, stock

when stocks go up, ______________ go down

bonds

you use statements to make a _________

budget

Def of High-Value Pharmacy Enterprise

creates a new framework for the profession by defining eight domains that define both fundamental and aspirational elements of practice that should be established within the contemporary health system pharmacy enterprise by calendar year 2025

occupational safety and health act of 1970

ensures safe and healthful working conditions

Fair Labor Standards Act

established federal minimum wage over-time pay independent contractor status

she said to remember this component of job demands (which is part of work system factors)

excessive workload

when you graduate you will be required to do

exit counseling

interest rate

expressed an an annual rate= APR

effective tax rate=

federal + state

what is the most important thing you can do to build resilience?

find a mentor

marginal tax rate is ___________ than actual effective

higher

pay off stuff with the

highest interest rates first

compounding interest

how our student loans work :,)

AU tech survey biggest issue was:

i do not feel value in what i do

PMI

insurance they make you pay in addition to your mortgage to show promise you will pay

simple interest

interested on principle amount alone. same charge each period

interest (lending)

it is a fixed payment for lending money a percentage of the amount invested

professional well-being correlates to

job satisfaction

how to prepare for entrepreneurial career

join NCPA be mohit

what is the LIFO method

last in first out This method assumes the last inventory item purchased is the first sold **THIS IS THE MOST COMMON METHOD USED IN PHARMACIES**

fiduciary

legally have to tell you what is good for you to do financially has client's best interest ahead of their own

more leadership and engagement=

less burnout and emotional exhaustion

Refi offers

lowest interest rates

CQI is used more in the ____________ world than ___________

manufacturing, healthcare

what can overpower resilience?

me (stress)

What is the 3rd leading cause of death in the US?

medication errors

never invest 100% in one company

need diversification

are budgets an important part of financial statments?

no

are expenses on a balance sheet?

no assets-liabilities=equity

20 year plan

not paying interest have to pay taxes on what is forgiven public

statements represent the __________ and budgets represent the _________

past, future

largest budget in hospital at AU

pharmacy

what is the best tool to eliminate harassment?

prevention

Age Discrimination in Employment Act

protects against discrimination for age

Americans with Disabilities Act

protects disabled individuals from discrimination requires reasonable accommodation

most common immediate financial goal

purchasing a home

define accounting

recording, reporting, and analyzing financial transactions of entities.

if technology is good then burnout is __________ if technology is bad then burnout __________

reduced worsens

what is an example of a business with a fast turnover?

restaurants

what are the three components of the income statement

revenue- expenses = income

increase income with

roommates, extra shifts, side gig (medical writing)

creating an emergency fund

save for at least 3-6 months of living expenses and leave it alone. do not touch it have an automatic transfer set up so you can put it into savings

what is an example of a business with a sloww turnover?

selling boats

What are the 3 types of business entities

sole proprietorship, partnership, corporation

do not ask interview questions

that are stupid (no race, gender, sexual preference/orientation, ethnicity etc)

difference between a medication error and an adverse events

the error was preventable

the sooner you refinance your loans with a private bank

the more money you will save bcs lower interest rate

why is the going on principle important in accounting?

the person reading the financial statement needs to know if the company can survive in the future Real def: The company's assets are sufficient to satisfy any obligations in the current state of the business. Can the Company continue? If there is doubt, this must be discussed in the financial statements. A Company that is NOT a going concern, is bankrupt.

why are the account principles of consistency and matching important

to compare results to prior periods and peers

marginal tax rate is what you pay on the

top portion of your income Ex: getting a bonus

what is a reason why budgeting is important

we need to know how many people we can hire next year do we need a bigger pharmacy

what is the WAC method

weighted average cost method This method takes the average of all inventory on hand at the time of sale

10 year plan

what is forgiven is NOT taxable nonprofit

roth-IRA is set up by your

you

standardization is good because

you are able to have comparative data gives a baseline for comparison to other pharmacies

subprime loan

you are not covering the interest on the loan. you never touch the principle amount that you borrowed

if loan forgiveness happens and you refied your stu loans

you do not get the forgiveness :)

if you itemize

you may NOT take the standard deduction •If itemizing, a taxpayer will pay LESS in taxes... but you must have MORE deductions than the Standard deduction for it to apply

determine your risk level

young people usually have higher risk. Higher risk= higher reward

401k is set up by

your employer

lowest rates of entrepreneurship

WV, PN, HI (states)

structure

What? Examples: Staff trained and certified Required references Adequate Clinical System Facility adequate for USP 795, 797 and 800

interest (borrow)

a fixed charge for borrowing money usually a percentage of the amount borrowed

liquidity

a liquid asset, easy to convert to cash without losing a lot of money in the process Ex; money in checking and savings emergency fund should be LIQUID, but does not need to be cash.

Six Sigma Quality

a quality measure that allows only 3.4 defects per million opportunities follows DMAIC methodology -Define the problem -Analyze the data -Improve the current process -Control the new process

make more money by getting

a side hustle- medical writing

common characteristics of a job that she highlighted

- job autonomy - performance feedback - direct feedback - opportunity to learn - participation in scheduling - control over resources

specifics of business type 2 (Start from scratch around a existing concept that is already proven)

- must have competition - must have competitive advantages

Act

-Adapt - modify the changes and repeat PDSA cycle -Adopt - consider expanding the changes in your organization to additional residents, staff, and units. -Abandon - change your approach and repeat PDSA cycle.

8 ingredients of a good job (which is part of the job enrichement theory)

-Direct feedback -Building relationships -Opportunity to learn -Participation in scheduling -Control over resources -Development of expertise -Communication with leadership -Personal engagement

medication errors are like

-swiss cheese: there can be a lot of holes which lead to errors

types of employment agreements

1. "at will" - either party may terminate at any time without liability 2. contract employment

Describe the fish bone

1. A part of the Plan part of PDSA - it is a structured brainstorming tool using categories to explore root causes for an undesirable effect.

Be aware of the 8 performance standards of patient care services

1. Performance Standard 1: Pharmacists provide comprehensive pharmacy patient care services as providers on the interdisciplinary care team in all settings of care. 2. Pharmacists are accountable for all patient medication use needs to support safe and effective drug therapy management. 3.Pharmacy is accountable for comprehensive medication management across the continuum of care to optimize drug therapy and patient safety 4. Pharmacists are responsible for ensuring that patients understand and are proficient in using their high-risk medications. 5. Pharmacy staff coordinates transitional and post-discharge drug therapy management for patients at high risk of readmission. 6. Pharmacy is accountable for clinical and financial stewardship of high-cost and high-risk medications to ensure their appropriate use in all patient care settings, including inpatient, outpatient and procedure settings, preventing the consequences of overuse and underuse 7. Pharmacists serve on organization-wide patient care committees to promote patient-centered, value-based care. 8. Pharmacy establishes a consistent, ongoing process and key performance indicators for comprehensive assessment and documentation of the impact of pharmacy patient care services on quality, safety and financial outcomes and other organization goals.

be aware of the performance indicators of business services

1. System-wide formulary management system implemented. 2.Strategies for cost-effective, coordinated medication management are implemented that take into consideration patient care, patient satisfaction and evolving payer requirements. 3.Systems are established to reduce medication waste in all phases of the medication use process. 4.Medication inventory management systems are documented and implemented across the health system 5.340B program is effectively managed to assure compliance, with savings optimized across the health system 6.Pharmacy is responsible for ensuring effective and efficient patient access to medications, including benefits review, prior authorization and prescription refill services, to support patients and providers and to optimize revenue. 7.Pharmacy is responsible for ensuring effective and efficient patient access to medications, including provision of comprehensive medication assistance program services to help uninsured and underinsured patients access free medications. 8. Pharmacy is accountable for ensuring optimal medication revenue integrity. 9. Pharmacy identifies, evaluates and implements new business ventures.

Case 1: •You notice that a patient's daughter is overprotective with everything that is done to her mother. She documents all activities and shares with you she must watch everything carefully while her mother is in the hospital. She states that on a previous hospitalization her mother was harmed by a medication given that was a known allergy. She feels the physician does not listen. She also states she feels they are not a priority as a patient as staff members walk by ignoring the call light. She asked you if you know someone that may can help them get the care they feel they need. -What "patient safety aims" are not being met in this patient?

1. Which are not being met? a. Patient centered care

what are the key differences between the business entities

1. a corp can have multiple stock owners 2. solve proprietorship has 1 owner 3. partner has 2 or more

crap from the wall street journal pic that apparently we have to know

1. average age is 40 2. 95.1% have a bachelor's or higher 3. 47% have advanced degrees 4. 71.5% come from middle class 5. less than 1% came from really rich or really poor 6. 70% used their own savings to fund 7. 42.5% were firstborns 8. 3.1 average siblings 9. 51.9% first in family to start business 10. 69.9% were married 11. 59.7% had a kid 12. 73% think luck was important to their success

selection of employees

1. background checks 2. criminal background checks 3. drug screens 4. medical exams 5. beware of internet searches

what are the key components to financial statements

1. balance sheet 2. income sheet 3. managements discussion 4. statement of cash flow

keys to success

1. commitment 2. vision 3. passion 4. big-picture thinking 5. engagement 6. extensive collaboration

What is part of the Maslach burnout inventory?

1. emotional exhaustion 2. depersonalization 3. diminished sense of personal achievement

IOM's Six Aims to be Met by Health Care Systems Regarding Quality of Care(Patient-Safety-Aims)

1. equitable 2. safe 3. efficient 4. timely 5. effective 6. patient-centered

Exemption tests

1. executive exemption 2. administrative exemption 3. professional exemption 4. highly compensated 5. employee exemption 6.computer employee exepmtion 7.outside sales exemption

why do you need financial statements

1. for current or potential future investors 2. if you want to sell stocks 3. if you want to see how you are doing compared to your peers 4. to get a loan from a bank 5. for budgeting and planning

The 8 domains of DHVP

1. patient care services 2. business services 3. ambulatory and specialty pharmacy 4. inpatient operations 5. safety and quality 6. pharmacy workplace 7. data information and management 8. leadership

Factors affecting clinician well-being and resilience

1. regulatory, business, and payer environment 2. organizational factors 3. learning/practice environment 4. skills and abilities 5. personal factors 6. health care roles 7. socio-cultural factors

OSHA

1. requires: -Employers to have a workplace that is free from recognized hazards that are causing or are likely to cause death or serious physical harm to employees 2. sets standards and conducts inspections -Standards often require adoption processes or means to protect workers -Ex: hazard communication standard. blood borne pathogens standard

quality measures by type

1. structure 2. process 3. outcome

Environmental drivers

1. third party pressures 2. mergers and acquisitions 3. rising drug costs 4. drug shortages 5. aging population -> chronic diseases 6. focus shift -> managing across continuum 7. shift to ambulatory care 8. and then there was.. COVID

CQI steps

1.Observing an occurrence or process 2.Isolating variables and changing the process 3.Monitoring results 4.Taking action

what are the 5 key purposes to having a budget

1.Planning 2.Supporting communication and coordination 3.Assigning Resources 4.Benchmarking 5.Assessing Performance

Case 2: •You complete a MUE of your hospitals vancomycin protocol as the rate of nephrotoxicity has risen from 2.3 to 6%. -You have good protocol compliance for appropriate monitoring which includes the defined frequency of serum creatinine measurements (98%) and trough levels drawn (95%). -Critically ill patients represent 90% of patients that are nephrotoxic. -Possible recommendations?

2. Possible recommendations? a. Plan- study, act, (tools that he mentioned whatever those may be) b. Fish bone c. See what other meds they are taking too d. Control the plan- watch the plan- collect data to make sure it is working

•Your business intelligence manager develops a report to monitor time critical meds in your hospital. Your notice a med surg unit chronically does not meet the goal of > 75% compliance. The goal is for all time critical meds to be administered within 30 minutes of the assigned administration time. Nurse educators promise they will reinforce education on time critical meds and do better.

3. Cant do 75% so the nurses are going to reinforce. What do you think? a. Make critical time care drugs more available b. Pilot it c. Collect little data blah blah blah

typical mortgage is _________ year long

30

pre-tax retirement plan

401K money that you set aside actually lowers your taxable income not paying on the money you earn, pay tax when you take it out earnings grow tax free

401k

A company-sponsored retirement plan that allows employees to make contributions of pre-tax dollars to an account that is then invested in stocks, bonds, or money markets. potential to be matched by employer

Def of pharmacy enterprise

An integrated system of pharmacy business units organized with accountability for the medication use process across the continuum of care to meet the needs of patients as they transition from different levels of the health care delivery system

computer systems employee exemption

Applying systems analysis techniques and procedures Designing, documenting, developing or modifying computer systems or programs

define consistency

Assures financial statement users that similar measurement concepts and procedures for related items within financial statements are applied for the entire accounting period and future periods. Any change must be clearly noted in the financial statement This is imperative for performance comparison with yourself (period over period) or others in the same industry

advantage of using the LIFO method

BEST replacement cost Ex: Epi Pen: the prices went up a lot. So if someone came in after getting in cheaper, we will have to bump that price up. Picking up that "replacement cost" which is most accurately represented by the last one you bought

Continuous Quality Improvement

Brings together QA and QC focuses on the processes instead of the individual

systematic approach to burnout

Goals for eliminating burnout and enhancing well-being 1.Create positive work environments 2.Create positive learning environments (has to be done early, find resources before burnout occurs) 3.Reduce administrative burden 4.Enable technology solutions 5.Provide support to clinicians and learners (reduce the stigma) 6.Invest in research

Define well-being

Health= state of complete physical, mental, and social well-being not merely the absence of disease or infirmary involves physical, emotional, mental, social, and spiritual factors

the term "burnout" was coined by: And why did he name it that

Herrbet Fredudengerger in 1974- he was volunteering at some drug place and nicknamed it after drug-addict slang

what is the going on principle

The company plans to remain in existence for the foreseeable future and operate for the long term; therefore, decisions will be made from the long-term perspective of the company

materiality definition

The significance of various decisions and their ultimate effects on the financial statements; an item is deemed material if the user of the financial statement would make a different decision based on the omission or inclusion of that item

definition of objectivity

accounting entries will be recorded on the basis of objective evidence, not on personal opinions or feelings

what are some examples of liabilities

accounts payable, accrued payroll, accrued rent, loans

AGI (adjusted gross income)

all the money you earn after all is taken out, taxable income

FTE

amount of staff allowed determined by statistics on charged doses and adjusted admissions

tax deduction

an amount may be subtracted from income

only borrow money for _________ to stay "safe"

assets (car, home, school)

what are the 3 components of the balance sheet

assets= liabilities + owners equity

what kind of automation increases inventory turns?

carousels

what are some examples of assets

cash, inventory, equipment, accounts recieveable

tax credit

chops down how much tax you owe immediately

hedge fund

company takes your money for your 401k and everyone else in your company and invests it as a whole

calculate inventory turnover

cost of goods sold/average inventory

Burnout is a consequence of?

cost, quality of care, poor teachers/role models

Def of value based healthcare

delivery framework that incentivizes healthcare providers to focus on the quality of services rendered, as opposed to the quantity.

Heath insurance portability and accountability act (HIPPA)

don't misuse patient information

an institutional pharmacy work environment must:

• facilitate safety, efficiency and customer/patient satisfaction with: -Centralized main operation •High security area (limited access) •Needed to house inventory •Sterile/Extemporaneous Compounding -Emergency operations ability •Ability to operate with major system failures (lighting/power, network related issues) -Accessible to patient care area •Tube system •Decentralized units vs. Decentralized staff

Financial Planning steps

•#1Prepare a budget •#2 - Create an Emergency Fund •#3 - Save for Retirement •#4 - Pay of your Debt •#5 - Seek Professional Advice •#6 - Set Financial Goals

Study

•Data are collected and analyzed •Determine if the change gave the desired outcome •Implementation lessons? •Summarize what was learned •Unintended consequences? •Surprises? •Successes? •Failures?

Quality assurance

•Ensures that processes lead to products that meet standards of quality •Defects are often identified "after the fact" Helps with future improvements

Fed loans offer:

•Financial aid programs •Debt forgiveness programs •Loan terms

Roth IRA

•Main difference - contributions are not tax deductible -No immediate return on contributions from lower taxes •Main benefit - Earnings grow tax free, and you do not pay taxes when money withdrawn after age 59½

purchasing in institutional pharmacy

•Performed by one more individuals, with responsibilities -Purchasing -Inventory management -Contracts -Shortages -Processing invoices Who is involved? 1. Vendors -Primary Wholesaler -Fluid vendor -Sterile Compounder (503 A/B) 2. Group purchasing organizations (GPO's) - they negotiate contract pricing and have services like waste reduction strategies

define resilience

•Reflects the ability of a person, community, or system to withstand, adapt, recover, rebound, or even grow from adversity, stress, or trauma.

income statement

•Revenue less expenses = Net income •Income statements are for the stated period, typically 1 year or 1 quarter •At the end of the period, net income closes into owner's equity on the balance sheet

health system pharmacy drivers

•Standardization Needed to Measure Pharmacy Value - metrics •Health System Cost Reductions - supplies / personnel •Improve Skill Mix for Pharmacy Technicians •Equal Focus on Retail/Employee Rx Benefits, Specialty Pharmacy and Ambulatory Clinical Pharmacy Services •Telehealth •Third Party Payor Disruption in Ambulatory Pharmacy (340B/Contract Pharmacy) •Inconsistency of Patient Transitions of Care & Population Health •Regulatory Requirements (USP797,800) •Pharmacy Staff Shortage Management of Automation

why is inventory turnover important in pharmacy

•This ratio measures how many times a company's inventory is sold and replaced over a specific period "Controllable expenses are subject to management discretion. For pharmacy managers, the most controllable balance sheet account is inventory"

Risk Tolerance

•Your willingness to accept higher volatility in the rate of return of your investments in exchange for a chance to earn a higher return

Sole Proprietorship/Partnership

••No election and offers no legal protection ••Only a tax status other than a formal "partnership agreement" ••You can elect to file for LLC status (Limited Liability Company) to have similar creditor protection as a Corporation

Corporations

••You must elect to "incorporate" ••Shareholders own stock and have voting rights ••Can offer the most legal protection as creditors cannot file claims on personal assets of shareholders

the 7 business types

◦1 - Start from scratch around a new concept ◦2 - Start from scratch around an existing concept that is already proven ◦3 - Start from scratch around an expertise already in place ◦4 - Buy an existing business ◦5 - Buy a franchise ◦6 - Independent business owner for an umbrella company ◦7 - Invent something

Small Business Administration (SBA.org)

◦Assists, counsels, and protects the interests of small businesses ◦Provide: -Training network (workshops, courses, pubs) -Local programs -Loan programs -Counseling

The Positives to Being an Entrepreneur

◦Be your own boss ◦Potential for unlimited wealth ◦Do what you love to do ◦Make a difference ◦Increased job security

specifics of business type 4 (buy and existing enterprise)

◦Can be very expensive ◦Must be comfortable with why the business is being sold ◦Must look for hidden financial issues ◦Don't try yourself...get a good attorney

specifics of business type 3 (Start from scratch around an enterprise)

◦Medium to low risk ◦Usually considered a micro business (< 3 people) ◦Many times can do part time

business type 7 (invent something)

◦Must understand all aspects of Intellectual Property....or hire a great attorney (aka patents cost money) ◦Requires a persistent selling process ◦Takes time to develop

the negatives of being an entrepreneur

◦Uncertainty of income ◦Risk involved ◦Long hours and little vacations (at least typically early in entrepreneurial life cycle) ◦Increased stress

specifics of business type 1 (Start from scratch around a new concept)

◦Usually the highest risk of failure ◦Usually lots of $$ to start (....usually) ◦Usually always takes longer than you think ◦Concept must be proven in order to raise money