PGA PGM 3.0 LEVEL 1 TEST EXAM
QUESTIONS AND ANSWERS GRADED A+
2026
The Process for developing a business plan starts before you establish the goals you would like
to achieve for the shops coming year - ANS True
Who should provide direction for creating the business plan at a Golf Operation - ANS Key
Stakeholders
According to the business planning Model, a business plan should build on and refine the
operation plan - ANS False
Long - Range Planning should initially assume an adversarial relationship between neighboring
facilities that directly compete with each other. - ANS True
What is the usual business destination for long range planning? - ANS 3-5 years Achieve its
vision
what is the most significant benefit of strategic business Planning. - ANS 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. - ANS True
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 1
,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? - ANS 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? - ANS Current state of the business
The SWOT analysis would treat opportunities are threats as factors that usually can be
controlled by the facility. - ANS False
The Result of a SWOT analysis could be sufficient justification for the abandonment of a core
business function - ANS True
Staff evaluation are a relevant data source for a SWOT analysis - ANS True
How might revenues be affected at a nearby daily fee course if the local tire plant has major
layoffs - ANS Go Down (decrease)
Lack of a mission statement is an example of a weakness that a SWOT analysis might disclose -
ANS True
Trends in local consumer spending would be most useful for evaluating a core business function
- ANS True
What should govern the decision to pursue an opportunity? - ANS Finances - Barriers to entry
- recourses - opportunity cost
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 2
,Goals, Objectives & strategies - ANS
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. - ANS 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. - ANS True
"Develop and promote group lesson programs aimed at a women and Juniors" is an example of
an effective business objectives. - ANS False
What Important Characteristic is missing in the business Objectives. "Increase pro shop sales
next year?" - ANS Measurables; How are you going to measure
Which Characteristics of goals and objectives is described as capable of being observed,
recorded, and measure. - ANS Quantifiable
What is functionally significant difference between goals and objectives? - ANS goal few
clearly defined targets objectives of how we get the goal.
A facilities financial objectives could achieved through operational strategies alone. -
ANS 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? - ANS .......
What is an example of a financial Strategy? - ANS Borrowing Money: Debt: Reduce operating
expense.
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 3
, What would be the most appropriate initial response to a facility income not meeting
projections. - ANS .......
Financial, Forecast, and Budgets - ANS
Calculating yield involves knowing the relationship between the amount utilized and the
amount available. - ANS True
Gross Profit is what remains after calculating the difference between revenue and cost of goods
- ANS True
Linear trend analysis and base year analysis are example of vertical analysis - ANS False
The Divisor in the linear trend formula - average percentage is the number of years of change
being measured. - ANS 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 - ANS True
Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the cost of
goods. - ANS 30%
What is the definition of "cost of goods sold" - ANS 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? - ANS 60%
According to the business planning course manual, what is usually the largest contributor to the
bottom line profit of the facility - ANS Rounds
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 4
QUESTIONS AND ANSWERS GRADED A+
2026
The Process for developing a business plan starts before you establish the goals you would like
to achieve for the shops coming year - ANS True
Who should provide direction for creating the business plan at a Golf Operation - ANS Key
Stakeholders
According to the business planning Model, a business plan should build on and refine the
operation plan - ANS False
Long - Range Planning should initially assume an adversarial relationship between neighboring
facilities that directly compete with each other. - ANS True
What is the usual business destination for long range planning? - ANS 3-5 years Achieve its
vision
what is the most significant benefit of strategic business Planning. - ANS 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. - ANS True
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 1
,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? - ANS 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? - ANS Current state of the business
The SWOT analysis would treat opportunities are threats as factors that usually can be
controlled by the facility. - ANS False
The Result of a SWOT analysis could be sufficient justification for the abandonment of a core
business function - ANS True
Staff evaluation are a relevant data source for a SWOT analysis - ANS True
How might revenues be affected at a nearby daily fee course if the local tire plant has major
layoffs - ANS Go Down (decrease)
Lack of a mission statement is an example of a weakness that a SWOT analysis might disclose -
ANS True
Trends in local consumer spending would be most useful for evaluating a core business function
- ANS True
What should govern the decision to pursue an opportunity? - ANS Finances - Barriers to entry
- recourses - opportunity cost
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 2
,Goals, Objectives & strategies - ANS
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. - ANS 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. - ANS True
"Develop and promote group lesson programs aimed at a women and Juniors" is an example of
an effective business objectives. - ANS False
What Important Characteristic is missing in the business Objectives. "Increase pro shop sales
next year?" - ANS Measurables; How are you going to measure
Which Characteristics of goals and objectives is described as capable of being observed,
recorded, and measure. - ANS Quantifiable
What is functionally significant difference between goals and objectives? - ANS goal few
clearly defined targets objectives of how we get the goal.
A facilities financial objectives could achieved through operational strategies alone. -
ANS 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? - ANS .......
What is an example of a financial Strategy? - ANS Borrowing Money: Debt: Reduce operating
expense.
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 3
, What would be the most appropriate initial response to a facility income not meeting
projections. - ANS .......
Financial, Forecast, and Budgets - ANS
Calculating yield involves knowing the relationship between the amount utilized and the
amount available. - ANS True
Gross Profit is what remains after calculating the difference between revenue and cost of goods
- ANS True
Linear trend analysis and base year analysis are example of vertical analysis - ANS False
The Divisor in the linear trend formula - average percentage is the number of years of change
being measured. - ANS 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 - ANS True
Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the cost of
goods. - ANS 30%
What is the definition of "cost of goods sold" - ANS 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? - ANS 60%
According to the business planning course manual, what is usually the largest contributor to the
bottom line profit of the facility - ANS Rounds
@COPYRIGHT 2026/2027 ALLRIGHTS RESERVED 4
