PGA PGM 3.0 Level 1 Test

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 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 AnsGo 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 AnsTrue What should govern the decision to pursue an opportunity? Ans-Finances - Barriers to entry -recourses - opportunity cost Goals, Objectives & strategies AnsConsider 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. What would be the most appropriate initial response to a facility income not meeting projections. Ans- ....... Financial, Forecast, and Budgets AnsCalculating 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 AnsTrue 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. Ans30% 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 What is the formula for Merchandise Net Operating Income? Ans- Revenue Generated -Operating Expense What events would cause a change in the forecast for the golf shop expense? AnsWhat metric should be part of every forecast regardless of the type of the facility AnsA Vision defines the short - Term objectives that must be accomplished in the upcoming year. Ans- False A Facility profile defines the overall culture of the business Ans- True The projected customer base of certain golf facilities located in the United States could assume members drawn from international Markets. Ans- True A yield Analysis is used to compile a facilities historical data on the number of rounds played. Ans- True What is the process called when a manager reviews total rounds to determine who is playing and when? Ans- Yield Analysis Mission Statements should include a definition of the facility's underlying financial model. Ans- False A sound mission statement defines the long term vision and core values of a facility Ans- True It is appropriate to address the role of the employee in the mission statement Ans- False Assessing the current state of business. AnsThe interpretation of the quantitative data is less susceptible to differences of opinion than qualitive data Ans- True Customer demographics is an internal factor Ans- False What type if information is typically provided by qualitive data. Ans- Likes; Dislikes; Experiences What examples would be considered internal data sources for planning purposes Ans- - Finances - Cogs etc.. Cost of goods sold is an example of qualitive date Ans- False What information would be most useful to the planning team interested in measuring the facilities past or current success Ans- Historical Yield Analysis The Utility of your business plan for managing Day to Day operations in a golf shop depends on your ability to manage internal factors Ans- True Consider the following table: Based on trend analysis, what forecast would be made on the number of weekend rounds that will be played in year 5. Year 1 2 3 4 5 Weekend Rounds 16k 14,500 16,000 17,400 ? AnsYou are concerned about a decline in business growth, what method would be most effective in portraying your overall financial history AnsFor the purpose of developing a business plan, what is the best description of a trend analysis? AnsThe total of annual sales for a golf shop for the past five years are listed below: Year: Total Annual Sale 1 $98,000 2 $100,000 3 $123,000 4 $121,000 5 $ 133,000 Based on a single trend projection, what is the most reasonable expectation for the coming year? what is the average percent change. Ans- 6.5% change Assumptions are necessary for forecasting numbers Ans- True What is one technique used to validate assumptions AnsWhat best describes sensitivity analysis AnsNext year you will be replacing a long term 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. Ans- They will bring in more revenue. In his first year at a golf club, The Head Professional has made some assumptions about how improvements in customer service will increase the coming year's sales volume. What Technique could be used to best test these assumptions. Ans-Percent change, historical analysis 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. Ans- Past Round History. Opening a new driving range 5 miles away would be relevant factor for making assumptions about the number of rounds likely to be played in the coming year. Ans- True A capital budget is used for large value items such as equipment and fixtures Ans- True The utility of a business plan for managing day to day operations depends on the accuracy of your assumptions Ans- True in a cash budget, transactions are only recognized at the time they occur Ans- True Depreciation allowances must be accounted for in a cash flow budget. Ans- True Your finalized operating budget will show whether or not you have the money to pay Ans- False A Cash budget records cash and credit card transactions Ans-true What information should be basis of a golf shop's 12 month operating budget AnsWhat is the correct Budget category for labor forecast AnsA Cash Flow budget is primarily concerned with what measure Ans-