PGA PGM 3.0 Level 1 Test Study Guide | 100% Correct Answers | Verified | Latest 2024 Version

PGA PGM 3.0 Level 1 Test Study Guide | 100% Correct Answers | Verified | Latest 2024 Version The Process for developing a business plan starts before you establish the goals you would like to achieve for the shops coming year - ✔✔True Who should provide direction for creating the business plan at a Golf Operation - ✔✔Key Stakeholders According to the business planning Model, a business plan should build on and refine the operation plan - ✔✔False Long - Range Planning should initially assume an adversarial relationship between neighboring facilities that directly compete with each other. - ✔✔True What is the usual business destination for long range planning? - ✔✔3-5 years Achieve its vision what is the most significant benefit of strategic business Planning. - ✔✔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. - ✔✔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 t aken towards completing the plan? - ✔✔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? - ✔✔Current state of the business The SWOT analysis would treat opportunities are threats as factors that usually can be controlled by the facility. - ✔✔False The Result of a SWOT analysis could be sufficient justification for the abandonment of a core business function - ✔✔True Staff evaluation are a relevant data source for a SWOT analysis - ✔✔True How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs - ✔✔Go Down (decrease) Lack of a mission statement is an example of a weakness that a SWOT analysis might disclose - ✔✔True Trends in local consumer spending would be most useful for evaluating a core business function - ✔✔True What should govern the decision to pursue an opportunity? - ✔✔Finances - Barriers to entry - recourses - opportunity cost Goals, Objectives & strategies - ✔✔ 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. - ✔✔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 obje ctive as presented in the business planning course manual. - ✔✔True "Develop and promote group lesson programs aimed at a women and Juniors" is an example of an effective business objectives. - ✔✔False What Important Characteristic is missing in the business Objectives. "Increase pro shop sales next year?" - ✔✔Measurables; How are you going to measure Which Characteristics of goals and objectives is described as capable of being observed, recorded, and measure. - ✔✔Quantifiable What is functionally significant difference between goals and objectives? - ✔✔goal few clearly defined targets objectives of how we get the goal. A facilities financial objectives could achieved through operational strategies alone. - ✔✔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? - ✔✔....... What is an example of a financial Strategy? - ✔✔Borrowing Money: Debt: Reduce operating expense. What would be the most appropriate initial response to a facility income not meeting projections. - ✔✔....... Financial, Forecast, and Budgets - ✔✔ Calculating yield involves knowing the relationship between the amount utilized and the amount available. - ✔✔True Gross Profit is what remains after calculating the difference between revenue and cost of goods - ✔✔True Linear trend analysis and base year analysis are example of vertical analysis - ✔✔False The Divisor in the linear trend formula - average percentage is the number of years of change being measured. - ✔✔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 - ✔✔True Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the cost of goods. - ✔✔30% What is the definition of "cost of goods sold" - ✔✔Cost used to by stock If the gross target margin for your golf shop were about 40%, what would be the target % for your cost of goods sold? - ✔✔60% According to the business planning course manual, what is usually the largest contributor to the bottom line profit of the facility - ✔✔Rounds What is the formula for Merchandise Net Operating Income? - ✔✔Revenue Generated - Operating Expense What events would cause a change in the forecast for the golf shop expense? - ✔✔ What metric should be part of every forecast regardless of the type of the facility - ✔✔ A Vision defines the short - Term objectives that must be accomplished in the upcoming year. - ✔✔False A Facility profile defines the overall culture of the business - ✔✔True