PGA PGM 3.0 Level 1 Test (Facility
Management) questions and answers
2025\2026 A+ Grade
The Process for developing a business plan starts before you establish the goals you would like to
achieve for the shops coming year
- correct answer True
Who should provide direction for creating the business plan at a Golf Operation
- correct answer Key Stakeholders
According to the business planning Model, a business plan should build on and refine the operation plan
- correct answer False
Long - Range Planning should initially assume an adversarial relationship between neighboring facilities
that directly compete with each other.
- correct answer True
What is the usual business destination for long range planning?
- correct answer 3-5 years Achieve its vision
what is the most significant benefit of strategic business Planning.
- correct answer Provide a long term vision & Destination
Helping Establish a starting point for goals, Objectives, and related strategies is an appropriate use of a
SWOT analysis.
- correct answer True
You are in the process of completing a business plan for the golf shop. Initial forecast of sales, expenses,
and profit have been made. Past data has been analyzed and important inside and outside factors have
,been identified. What is the next step to be taken towards completing the plan?
- correct answer Monitor Performance
A Golf Professional is purchasing a golf course. The business plan he presented to his banker included his
history of operating successfully operating similar facilities, budget projections for the first five years
under his management, and objectives and strategies for reaching his goals. The banker rejected the
loan application because of missing information. What important element is missing from the business
plan?
- correct answer Current state of the business
The SWOT analysis would treat opportunities are threats as factors that usually can be controlled by the
facility.
- correct answer False
The Result of a SWOT analysis could be sufficient justification for the abandonment of a core business
function
- correct answer True
Staff evaluation are a relevant data source for a SWOT analysis
- correct answer True
How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs
- correct answer Go Down (decrease)
Lack of a mission statement is an example of a weakness that a SWOT analysis might disclose
- correct answer True
Trends in local consumer spending would be most useful for evaluating a core business function
- correct answer True
What should govern the decision to pursue an opportunity?
- correct answer Finances - Barriers to entry - recourses - opportunity cost
,Goals, Objectives & strategies
- correct answer
Consider the following the statement as part of the a business plan: "improve range profits and
customer satisfaction." According to the business planning course, this statement is an example of an
objective.
- correct answer True
The new manager of a ten - year - old private course currently doing an average of 5, 000 tournament
rounds per year, proposes to increase tournament rounds by 50% by the end of the next year. This
proposal meets the criteria for an effective business objective as presented in the business planning
course manual.
- correct answer True
"Develop and promote group lesson programs aimed at a women and Juniors" is an example of an
effective business objectives.
- correct answer False
What Important Characteristic is missing in the business Objectives. "Increase pro shop sales next year?"
- correct answer Measurables; How are you going to measure
Which Characteristics of goals and objectives is described as capable of being observed, recorded, and
measure.
- correct answer Quantifiable
What is functionally significant difference between goals and objectives?
- correct answer goal few clearly defined targets objectives of how we get the goal.
A facilities financial objectives could achieved through operational strategies alone.
- correct answer False
The Following agenda was part of a golf range business plan."175 dozen range balls and rotate usage
three times a year. Who: Head Professional. When: End of First Quarter. Cost: $1500" According to the
business plan component represented by this statement?
- correct answer .......
, What is an example of a financial Strategy?
- correct answer Borrowing Money: Debt: Reduce operating expense.
What would be the most appropriate initial response to a facility income not meeting projections.
- correct answer .......
Financial, Forecast, and Budgets
- correct answer
Calculating yield involves knowing the relationship between the amount utilized and the amount
available.
- correct answer True
Gross Profit is what remains after calculating the difference between revenue and cost of goods
- correct answer True
Linear trend analysis and base year analysis are example of vertical analysis
- correct answer False
The Divisor in the linear trend formula - average percentage is the number of years of change being
measured.
- correct answer True
Conducting a base year analysis is a good choice for a facility that has just completed a project that
added nine new holes to the original 9 - hole course
- correct answer True
Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the cost of goods.
- correct answer 30%
What is the definition of "cost of goods sold"
- correct answer Cost used to by stock
Management) questions and answers
2025\2026 A+ Grade
The Process for developing a business plan starts before you establish the goals you would like to
achieve for the shops coming year
- correct answer True
Who should provide direction for creating the business plan at a Golf Operation
- correct answer Key Stakeholders
According to the business planning Model, a business plan should build on and refine the operation plan
- correct answer False
Long - Range Planning should initially assume an adversarial relationship between neighboring facilities
that directly compete with each other.
- correct answer True
What is the usual business destination for long range planning?
- correct answer 3-5 years Achieve its vision
what is the most significant benefit of strategic business Planning.
- correct answer Provide a long term vision & Destination
Helping Establish a starting point for goals, Objectives, and related strategies is an appropriate use of a
SWOT analysis.
- correct answer True
You are in the process of completing a business plan for the golf shop. Initial forecast of sales, expenses,
and profit have been made. Past data has been analyzed and important inside and outside factors have
,been identified. What is the next step to be taken towards completing the plan?
- correct answer Monitor Performance
A Golf Professional is purchasing a golf course. The business plan he presented to his banker included his
history of operating successfully operating similar facilities, budget projections for the first five years
under his management, and objectives and strategies for reaching his goals. The banker rejected the
loan application because of missing information. What important element is missing from the business
plan?
- correct answer Current state of the business
The SWOT analysis would treat opportunities are threats as factors that usually can be controlled by the
facility.
- correct answer False
The Result of a SWOT analysis could be sufficient justification for the abandonment of a core business
function
- correct answer True
Staff evaluation are a relevant data source for a SWOT analysis
- correct answer True
How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs
- correct answer Go Down (decrease)
Lack of a mission statement is an example of a weakness that a SWOT analysis might disclose
- correct answer True
Trends in local consumer spending would be most useful for evaluating a core business function
- correct answer True
What should govern the decision to pursue an opportunity?
- correct answer Finances - Barriers to entry - recourses - opportunity cost
,Goals, Objectives & strategies
- correct answer
Consider the following the statement as part of the a business plan: "improve range profits and
customer satisfaction." According to the business planning course, this statement is an example of an
objective.
- correct answer True
The new manager of a ten - year - old private course currently doing an average of 5, 000 tournament
rounds per year, proposes to increase tournament rounds by 50% by the end of the next year. This
proposal meets the criteria for an effective business objective as presented in the business planning
course manual.
- correct answer True
"Develop and promote group lesson programs aimed at a women and Juniors" is an example of an
effective business objectives.
- correct answer False
What Important Characteristic is missing in the business Objectives. "Increase pro shop sales next year?"
- correct answer Measurables; How are you going to measure
Which Characteristics of goals and objectives is described as capable of being observed, recorded, and
measure.
- correct answer Quantifiable
What is functionally significant difference between goals and objectives?
- correct answer goal few clearly defined targets objectives of how we get the goal.
A facilities financial objectives could achieved through operational strategies alone.
- correct answer False
The Following agenda was part of a golf range business plan."175 dozen range balls and rotate usage
three times a year. Who: Head Professional. When: End of First Quarter. Cost: $1500" According to the
business plan component represented by this statement?
- correct answer .......
, What is an example of a financial Strategy?
- correct answer Borrowing Money: Debt: Reduce operating expense.
What would be the most appropriate initial response to a facility income not meeting projections.
- correct answer .......
Financial, Forecast, and Budgets
- correct answer
Calculating yield involves knowing the relationship between the amount utilized and the amount
available.
- correct answer True
Gross Profit is what remains after calculating the difference between revenue and cost of goods
- correct answer True
Linear trend analysis and base year analysis are example of vertical analysis
- correct answer False
The Divisor in the linear trend formula - average percentage is the number of years of change being
measured.
- correct answer True
Conducting a base year analysis is a good choice for a facility that has just completed a project that
added nine new holes to the original 9 - hole course
- correct answer True
Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the cost of goods.
- correct answer 30%
What is the definition of "cost of goods sold"
- correct answer Cost used to by stock
