PGA PGM 3.0 LEVEL 1 TEST
QUESTIONS WITH COMPLETE
SOLUTIONS
,The Process for developing a business plan starts before you establish the goals you
would like to achieve for the shops coming year - ANSWERSTrue
Who should provide direction for creating the business plan at a Golf Operation -
ANSWERSKey Stakeholders
According to the business planning Model, a business plan should build on and refine
the operation plan - ANSWERSFalse
Long - Range Planning should initially assume an adversarial relationship between
neighboring facilities that directly compete with each other. - ANSWERSTrue
What is the usual business destination for long range planning? - ANSWERS3-5 years
Achieve its vision
what is the most significant benefit of strategic business Planning. - ANSWERSProvide
a long term vision & Destination
Helping Establish a starting point for goals, Objectives, and related strategies is an
appropriate use of a SWOT analysis. - ANSWERSTrue
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? - ANSWERSMonitor 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? -
ANSWERSCurrent state of the business
The SWOT analysis would treat opportunities are threats as factors that usually can be
controlled by the facility. - ANSWERSFalse
The Result of a SWOT analysis could be sufficient justification for the abandonment of a
core business function - ANSWERSTrue
Staff evaluation are a relevant data source for a SWOT analysis - ANSWERSTrue
,How might revenues be affected at a nearby daily fee course if the local tire plant has
major layoffs - ANSWERSGo Down (decrease)
Lack of a mission statement is an example of a weakness that a SWOT analysis might
disclose - ANSWERSTrue
Trends in local consumer spending would be most useful for evaluating a core business
function - ANSWERSTrue
What should govern the decision to pursue an opportunity? - ANSWERSFinances -
Barriers to entry - recourses - opportunity cost
Goals, Objectives & strategies - ANSWERS
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. - ANSWERSTrue
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. - ANSWERSTrue
"Develop and promote group lesson programs aimed at a women and Juniors" is an
example of an effective business objectives. - ANSWERSFalse
What Important Characteristic is missing in the business Objectives. "Increase pro shop
sales next year?" - ANSWERSMeasurables; How are you going to measure
Which Characteristics of goals and objectives is described as capable of being
observed, recorded, and measure. - ANSWERSQuantifiable
What is functionally significant difference between goals and objectives? -
ANSWERSgoal few clearly defined targets objectives of how we get the goal.
A facilities financial objectives could achieved through operational strategies alone. -
ANSWERSFalse
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? - ANSWERS.......
What is an example of a financial Strategy? - ANSWERSBorrowing Money: Debt:
Reduce operating expense.
, What would be the most appropriate initial response to a facility income not meeting
projections. - ANSWERS.......
Financial, Forecast, and Budgets - ANSWERS
Calculating yield involves knowing the relationship between the amount utilized and the
amount available. - ANSWERSTrue
Gross Profit is what remains after calculating the difference between revenue and cost
of goods - ANSWERSTrue
Linear trend analysis and base year analysis are example of vertical analysis -
ANSWERSFalse
The Divisor in the linear trend formula - average percentage is the number of years of
change being measured. - ANSWERSTrue
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 - ANSWERSTrue
Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the
cost of goods. - ANSWERS30%
What is the definition of "cost of goods sold" - ANSWERSCost 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? - ANSWERS60%
According to the business planning course 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
Generated - Operating Expense
What events would cause a change in the forecast for the golf shop expense? -
ANSWERS
What metric should be part of every forecast regardless of the type of the facility -
ANSWERS
A Vision defines the short - Term objectives that must be accomplished in the upcoming
year. - ANSWERSFalse
A Facility profile defines the overall culture of the business - ANSWERSTrue
QUESTIONS WITH COMPLETE
SOLUTIONS
,The Process for developing a business plan starts before you establish the goals you
would like to achieve for the shops coming year - ANSWERSTrue
Who should provide direction for creating the business plan at a Golf Operation -
ANSWERSKey Stakeholders
According to the business planning Model, a business plan should build on and refine
the operation plan - ANSWERSFalse
Long - Range Planning should initially assume an adversarial relationship between
neighboring facilities that directly compete with each other. - ANSWERSTrue
What is the usual business destination for long range planning? - ANSWERS3-5 years
Achieve its vision
what is the most significant benefit of strategic business Planning. - ANSWERSProvide
a long term vision & Destination
Helping Establish a starting point for goals, Objectives, and related strategies is an
appropriate use of a SWOT analysis. - ANSWERSTrue
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? - ANSWERSMonitor 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? -
ANSWERSCurrent state of the business
The SWOT analysis would treat opportunities are threats as factors that usually can be
controlled by the facility. - ANSWERSFalse
The Result of a SWOT analysis could be sufficient justification for the abandonment of a
core business function - ANSWERSTrue
Staff evaluation are a relevant data source for a SWOT analysis - ANSWERSTrue
,How might revenues be affected at a nearby daily fee course if the local tire plant has
major layoffs - ANSWERSGo Down (decrease)
Lack of a mission statement is an example of a weakness that a SWOT analysis might
disclose - ANSWERSTrue
Trends in local consumer spending would be most useful for evaluating a core business
function - ANSWERSTrue
What should govern the decision to pursue an opportunity? - ANSWERSFinances -
Barriers to entry - recourses - opportunity cost
Goals, Objectives & strategies - ANSWERS
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. - ANSWERSTrue
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. - ANSWERSTrue
"Develop and promote group lesson programs aimed at a women and Juniors" is an
example of an effective business objectives. - ANSWERSFalse
What Important Characteristic is missing in the business Objectives. "Increase pro shop
sales next year?" - ANSWERSMeasurables; How are you going to measure
Which Characteristics of goals and objectives is described as capable of being
observed, recorded, and measure. - ANSWERSQuantifiable
What is functionally significant difference between goals and objectives? -
ANSWERSgoal few clearly defined targets objectives of how we get the goal.
A facilities financial objectives could achieved through operational strategies alone. -
ANSWERSFalse
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? - ANSWERS.......
What is an example of a financial Strategy? - ANSWERSBorrowing Money: Debt:
Reduce operating expense.
, What would be the most appropriate initial response to a facility income not meeting
projections. - ANSWERS.......
Financial, Forecast, and Budgets - ANSWERS
Calculating yield involves knowing the relationship between the amount utilized and the
amount available. - ANSWERSTrue
Gross Profit is what remains after calculating the difference between revenue and cost
of goods - ANSWERSTrue
Linear trend analysis and base year analysis are example of vertical analysis -
ANSWERSFalse
The Divisor in the linear trend formula - average percentage is the number of years of
change being measured. - ANSWERSTrue
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 - ANSWERSTrue
Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the
cost of goods. - ANSWERS30%
What is the definition of "cost of goods sold" - ANSWERSCost 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? - ANSWERS60%
According to the business planning course 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
Generated - Operating Expense
What events would cause a change in the forecast for the golf shop expense? -
ANSWERS
What metric should be part of every forecast regardless of the type of the facility -
ANSWERS
A Vision defines the short - Term objectives that must be accomplished in the upcoming
year. - ANSWERSFalse
A Facility profile defines the overall culture of the business - ANSWERSTrue
