PGA GOLF MANAGEMENT 3.0 LEVEL
3 EXAM 100% CORRECT 2025/2026
,What makes interpretation of quantitative data more desirable than qualitative data? -
ANSWERSQuantitative information is clearly defined and less susceptible to differences
of opinion among people interpreting the data
Why is customer demographics an external factor? - ANSWERSBecause external
factors are the things that affect the business from the outside, and customer
demographics impact the business and are not within the business
What type of information is typically provided by qualitative data? -
ANSWERSQualitative data informs the planning team "how" and "why" things are
happening. Qualitative data often informs the planning team about the quality of the
business offerings, such as condition of the course, enjoyment, or satisfaction of
customers
What examples would be considered internal data sources for planning purposes? -
ANSWERSThese include staffing, course maintenance, types of amenities, and
business marketing and promotions- basically anything that can be generated on site.
What type of data is cost of goods sold? - ANSWERSQuantitative Data
What information would be most useful to the planning team interested in measuring the
facility's past or current successes? - ANSWERSQuantitative Data
The effectiveness of a golf professional's business plan for managing day-to-day
operations in a golf shop depends on what? - ANSWERSOperational Strategies
How would opportunities and threats be categorized in a SWOT analysis? -
ANSWERSExternal Factors
How might the results of a SWOT analysis affect core business functions? -
ANSWERSA properly organized and prioritized SWOT analysis gives a summary of the
current state of the facility's business, but it also helps determine the direction the
business should take. The SWOT provides valuable input when developing new goals,
objectives, and strategies for improvement later in the business planning process.
When conducting a SWOT analysis for Human Resources, what are examples of
relevant data sources? - ANSWERSJob descriptions, hiring and training, scheduling,
evaluating and continuing education
How might revenues be affected at a nearby daily fee course if the local tire plant has
major layoffs? - ANSWERSThere may be a decrease in rounds and revenue earned
,When defining a business, what are examples of weaknesses that may be disclosed by
performing a SWOT analysis? - ANSWERSIf a merchandise line is not selling well, is it
important enough to devote money and energy to improve sales, or should the
merchandise line be dropped in favor of one that will sell better?
What is being evaluated when reviewing information data from trends in local consumer
spending? - ANSWERSWhether a threat is internal or external
What should govern the decision to pursue an opportunity? - ANSWERSThe results of
the SWOT analysis
What criteria must be used to improve the following objective: "Improve range profits
and customer satisfaction" ? - ANSWERSSMART goals
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 next year. What criteria is missing from this proposed goal? - ANSWERSThe
objective is not realistic
Provide examples of horizontal analyses. - ANSWERSLinear Trend Analysis and Base
Year Analysis
What figure is represented in the divisor in the linear trend formula? -
ANSWERSPrevious Year
What type of analysis would be best for a facility that has just completed a project that
added nine new holes to the original 9-hole course? - ANSWERSBase Year Analysis
Golf shop sales of $100,000 yield a gross margin of $30,000. What is the percentage of
the cost of goods sold? - ANSWERSCost of Goods Sold represents the value (at cost)
of all merchandise that is sold to customers, stolen, lost, damaged, or destroyed during
a particular period. The major component is the amount paid to vendors to acquire the
goods, but may also include the costs for shipping, ticketing, and handling.
If the gross target margin for your golf shop were 40 percent, what would be the target
percentage for your cost of goods sold? - ANSWERStotal merchandise sales (100)-cost
of goods sold=gross margin (40); then cost of goods sold would be 60%
According to the Business Planning Manual, what is usually the largest contributor to
the bottom-line profit of the facility? - ANSWERSRounds
What is the formula for Merchandise Net Operating Income? - ANSWERSRevenue -
(Cost of Goods Sold + Operating Expenses)
What events would cause a change in the forecast for golf shop expenses? -
ANSWERSMajor events (natural disaster or pandemic) or the economy (ex. golf shop
, expenses may increase if they suddenly have to bring in more golf shirts because the
shop is selling through the current inventory)
What metric should be part of every forecast regardless of the type of facility? -
ANSWERSRounds
You are most concerned about a decline in business growth. What method would be
most effective in portraying your overall financial history? - ANSWERSLinear Trend
Analysis
For the purpose of developing a business plan, what is the best description of trend
analysis? - ANSWERSThe percentage change up or down from year to year. Gives a
good understanding of past performance.
By understanding the factors that could potentially affect forecasts, what can PGA
Professionals make about how the numbers will change to construct better financial
forecasts? - ANSWERSUse Linear Trend Analysis
What is one of the techniques used to validate assumptions? - ANSWERSScenarios
and Sensitivity Analysis, Historical Review, Expert Review
What best describes sensitivity analysis? - ANSWERSGenerating scenarios by entering
different values for the assumptions. Generating several different scenarios, both
optimistic and pessimistic, helps determine which assumptions and projections make
the most sense for the business. Helps identify possible best and worst-case scenarios
and how they affect performance.
Next year you will be replacing a long-time golf shop employee with a new assistant
who has considerable sales experience and selling skills. You will be paying this new
staff member a higher salary. What is a reasonable assumption for you to make? -
ANSWERSProductivity will increase, golf shop sales will increase, member experience
will increase, offsetting the higher salary
In his first year at Meadows Golf Club, the Head Professional has made some
assumptions about how improvements in customer services will increase the coming
year's sales volume. What technique could be used to best test these assumptions? -
ANSWERSExpert Review: run ideas by more experienced professionals for feedback
Your employer is contemplating an increase in weekend green fees. She would like to
know how this increase might affect the number of rounds played. What would provide
her with the best estimate? - ANSWERSLinear Trend Analysis
How would the opening of a new driving range 5 miles away likely be a relevant factor in
the business plan for the coming year? - ANSWERSFor making assumptions about the
number of rounds likely to be played in the coming year
3 EXAM 100% CORRECT 2025/2026
,What makes interpretation of quantitative data more desirable than qualitative data? -
ANSWERSQuantitative information is clearly defined and less susceptible to differences
of opinion among people interpreting the data
Why is customer demographics an external factor? - ANSWERSBecause external
factors are the things that affect the business from the outside, and customer
demographics impact the business and are not within the business
What type of information is typically provided by qualitative data? -
ANSWERSQualitative data informs the planning team "how" and "why" things are
happening. Qualitative data often informs the planning team about the quality of the
business offerings, such as condition of the course, enjoyment, or satisfaction of
customers
What examples would be considered internal data sources for planning purposes? -
ANSWERSThese include staffing, course maintenance, types of amenities, and
business marketing and promotions- basically anything that can be generated on site.
What type of data is cost of goods sold? - ANSWERSQuantitative Data
What information would be most useful to the planning team interested in measuring the
facility's past or current successes? - ANSWERSQuantitative Data
The effectiveness of a golf professional's business plan for managing day-to-day
operations in a golf shop depends on what? - ANSWERSOperational Strategies
How would opportunities and threats be categorized in a SWOT analysis? -
ANSWERSExternal Factors
How might the results of a SWOT analysis affect core business functions? -
ANSWERSA properly organized and prioritized SWOT analysis gives a summary of the
current state of the facility's business, but it also helps determine the direction the
business should take. The SWOT provides valuable input when developing new goals,
objectives, and strategies for improvement later in the business planning process.
When conducting a SWOT analysis for Human Resources, what are examples of
relevant data sources? - ANSWERSJob descriptions, hiring and training, scheduling,
evaluating and continuing education
How might revenues be affected at a nearby daily fee course if the local tire plant has
major layoffs? - ANSWERSThere may be a decrease in rounds and revenue earned
,When defining a business, what are examples of weaknesses that may be disclosed by
performing a SWOT analysis? - ANSWERSIf a merchandise line is not selling well, is it
important enough to devote money and energy to improve sales, or should the
merchandise line be dropped in favor of one that will sell better?
What is being evaluated when reviewing information data from trends in local consumer
spending? - ANSWERSWhether a threat is internal or external
What should govern the decision to pursue an opportunity? - ANSWERSThe results of
the SWOT analysis
What criteria must be used to improve the following objective: "Improve range profits
and customer satisfaction" ? - ANSWERSSMART goals
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 next year. What criteria is missing from this proposed goal? - ANSWERSThe
objective is not realistic
Provide examples of horizontal analyses. - ANSWERSLinear Trend Analysis and Base
Year Analysis
What figure is represented in the divisor in the linear trend formula? -
ANSWERSPrevious Year
What type of analysis would be best for a facility that has just completed a project that
added nine new holes to the original 9-hole course? - ANSWERSBase Year Analysis
Golf shop sales of $100,000 yield a gross margin of $30,000. What is the percentage of
the cost of goods sold? - ANSWERSCost of Goods Sold represents the value (at cost)
of all merchandise that is sold to customers, stolen, lost, damaged, or destroyed during
a particular period. The major component is the amount paid to vendors to acquire the
goods, but may also include the costs for shipping, ticketing, and handling.
If the gross target margin for your golf shop were 40 percent, what would be the target
percentage for your cost of goods sold? - ANSWERStotal merchandise sales (100)-cost
of goods sold=gross margin (40); then cost of goods sold would be 60%
According to the Business Planning Manual, what is usually the largest contributor to
the bottom-line profit of the facility? - ANSWERSRounds
What is the formula for Merchandise Net Operating Income? - ANSWERSRevenue -
(Cost of Goods Sold + Operating Expenses)
What events would cause a change in the forecast for golf shop expenses? -
ANSWERSMajor events (natural disaster or pandemic) or the economy (ex. golf shop
, expenses may increase if they suddenly have to bring in more golf shirts because the
shop is selling through the current inventory)
What metric should be part of every forecast regardless of the type of facility? -
ANSWERSRounds
You are most concerned about a decline in business growth. What method would be
most effective in portraying your overall financial history? - ANSWERSLinear Trend
Analysis
For the purpose of developing a business plan, what is the best description of trend
analysis? - ANSWERSThe percentage change up or down from year to year. Gives a
good understanding of past performance.
By understanding the factors that could potentially affect forecasts, what can PGA
Professionals make about how the numbers will change to construct better financial
forecasts? - ANSWERSUse Linear Trend Analysis
What is one of the techniques used to validate assumptions? - ANSWERSScenarios
and Sensitivity Analysis, Historical Review, Expert Review
What best describes sensitivity analysis? - ANSWERSGenerating scenarios by entering
different values for the assumptions. Generating several different scenarios, both
optimistic and pessimistic, helps determine which assumptions and projections make
the most sense for the business. Helps identify possible best and worst-case scenarios
and how they affect performance.
Next year you will be replacing a long-time golf shop employee with a new assistant
who has considerable sales experience and selling skills. You will be paying this new
staff member a higher salary. What is a reasonable assumption for you to make? -
ANSWERSProductivity will increase, golf shop sales will increase, member experience
will increase, offsetting the higher salary
In his first year at Meadows Golf Club, the Head Professional has made some
assumptions about how improvements in customer services will increase the coming
year's sales volume. What technique could be used to best test these assumptions? -
ANSWERSExpert Review: run ideas by more experienced professionals for feedback
Your employer is contemplating an increase in weekend green fees. She would like to
know how this increase might affect the number of rounds played. What would provide
her with the best estimate? - ANSWERSLinear Trend Analysis
How would the opening of a new driving range 5 miles away likely be a relevant factor in
the business plan for the coming year? - ANSWERSFor making assumptions about the
number of rounds likely to be played in the coming year
