PGA PGM 3.0 Level 1 Test Questions an
g g g g g g g
d Answers 100% Pass
g g g
ThegProcessgforgdevelopinggagbusinessgplangstartsgbeforegyougestablishgtheggoalsgyougwouldglikegt
ogachievegforgthegshopsgcominggyearg✔✔True
Whog shouldg provideg directiong forg creatingg theg businessg plang atg ag Golfg Operationg ✔✔Keyg
Stakeholders
AccordinggtogthegbusinessgplanninggModel,gagbusinessgplangshouldgbuildgongandgrefinegthegoperatio
ngplang✔✔False
Longg-
RangegPlanninggshouldginitiallygassumegangadversarialgrelationshipgbetweengneighboringgfaciliti
g
esgthatgdirectlygcompetegwithgeachgother.g✔✔True
Whatgisgthegusualgbusinessgdestinationgforglonggrangegplanning?g✔✔3-5gyearsgAchievegitsgvision
whatgisgthegmostgsignificantgbenefitgofgstrategicgbusinessgPlanning.g✔✔Providegaglonggtermgvisio
ng&gDestination
HelpinggEstablishgagstartinggpointgforggoals,gObjectives,gandgrelatedgstrategiesgisgangappropriategus
egofgagSWOTganalysis.g✔✔True
Yougaregingthegprocessgofgcompletinggagbusinessgplangforgtheggolfgshop.gInitialgforecastgofgsales,g
expenses,gandgprofitghavegbeengmade.gPastgdataghasgbeenganalyzedgandgimportantginsidegandgoutsid
egfactorsg haveg beeng identified.g Whatg isg theg nextg stepg tog beg takeng towardsg completingg theg pl
an?
✔✔MonitorgPerformance
,AgGolfgProfessionalgisgpurchasinggaggolfgcourse.gThegbusinessgplanghegpresentedgtoghisgbankergi
ncludedghisghistorygofgoperatinggsuccessfullygoperatinggsimilargfacilities,gbudgetgprojectionsgforgt
hegfirstgfivegyearsgunderghisgmanagement,gandgobjectivesgandgstrategiesgforgreachingghisggoals.gTh
egbankergrejectedgthegloangapplicationgbecausegofgmissingginformation.gWhatgimportantgelementg
isgmissinggfromgthegbusinessgplan?g✔✔Currentgstategofgthegbusiness
ThegSWOTganalysisgwouldgtreatgopportunitiesgaregthreatsgasgfactorsgthatgusuallygcangbegcontrolle
dgbygthegfacility.g✔✔False
ThegResultgofgagSWOTganalysisgcouldgbegsufficientgjustificationgforgthegabandonmentgofgagcoreg
businessgfunctiong✔✔True
StaffgevaluationgaregagrelevantgdatagsourcegforgagSWOTganalysisg✔✔True
Howgmightgrevenuesgbegaffectedgatgagnearbygdailygfeegcoursegifgtheglocalgtiregplantghasgmajorglayoffs
✔✔GogDowng(decrease)
Lackg ofg ag missiong statementg isg ang exampleg ofg ag weaknessg thatg ag SWOTg analysisg mightg disclose
✔✔True
Trendsginglocalg consumergspendinggwouldgbegmostgusefulgforgevaluatinggagcoregbusinessg function
✔✔True
Whatg shouldg governg theg decisiong tog pursueg ang opportunity?g ✔✔Financesg -
g Barriersg tog entryg -grecoursesg-gopportunitygcost
Goals,gObjectivesg&gstrategiesg✔✔
,Considergthegfollowinggthegstatementgasgpartgofgthegagbusinessgplan:g"improvegrangegprofitsgandg
customergsatisfaction."gAccordinggtogthegbusinessgplanninggcourse,gthisgstatementgisgangexampleg
ofgangobjective.g✔✔True
Thegnewgmanagergofgagteng-gyearg-
oldgprivategcoursegcurrentlygdoinggangaveragegofg5,g000gtournamentgroundsgpergyear,gproposesgto
g
increasegtournamentgroundsgbyg50%gbygthegendgofgthegnextgyear.gThisgproposalgmeetsgthegcriteria
g
forgangeffectivegbusinessgobjectivegasgpresentedgingthegbusinessgplanninggcoursegmanual.g✔✔Tr
g
ue
"DevelopgandgpromoteggroupglessongprogramsgaimedgatgagwomengandgJuniors"gisgangexamplegofga
ngeffectivegbusinessgobjectives.g✔✔False
WhatgImportantgCharacteristicgisgmissinggingthegbusinessgObjectives.g"Increasegprogshopgsalesgne
xtgyear?"g✔✔Measurables;gHowgaregyouggoinggtogmeasure
WhichgCharacteristicsgofggoalsgandgobjectivesgisgdescribedgasgcapablegofgbeinggobserved,grecorde
d,gandgmeasure.g✔✔Quantifiable
Whatg isgfunctionallygsignificantg differencegbetweenggoalsg andgobjectives?g ✔✔goalg fewgclearlygd
efinedgtargetsgobjectivesgofghowgweggetgtheggoal.
Agfacilitiesgfinancialgobjectivesgcouldgachievedgthroughgoperationalgstrategiesgalone.g✔✔False
ThegFollowinggagendagwasgpartgofgaggolfgrangegbusinessgplan."175gdozengrangegballsgandgrotateg
usagegthreegtimesgagyear.gWho:gHeadgProfessional.gWhen:gEndgofgFirstgQuarter.gCost:g$1500"gA
ccordinggtogthegbusinessgplangcomponentgrepresentedgbygthisgstatement?g✔✔.......
Whatg isg ang exampleg ofg ag financialg Strategy?g ✔✔Borrowingg Money:g Debt:g Reduceg operatin
ggexpense.
, Whatgwouldgbegthegmostgappropriateginitialgresponsegtogagfacilitygincomegnotgmeetinggprojections.
✔✔.......
Financial,gForecast,gandgBudgetsg✔✔
Calculatinggyieldginvolvesgknowinggthegrelationshipgbetweengthegamountgutilizedgandgthegamoun
tgavailable.g✔✔True
Grossg Profitg isg whatg remainsg afterg calculatingg theg differenceg betweeng revenueg andg costg ofg goods
✔✔True
Lineargtrendganalysisgandgbasegyearganalysisgaregexamplegofgverticalganalysisg✔✔False
ThegDivisorgingtheglineargtrendgformulag-
averagegpercentagegisgthegnumbergofgyearsgofgchangegbeinggmeasured.g✔✔True
g
Conductinggagbasegyearganalysisgisgaggoodgchoicegforgagfacilitygthatghasgjustgcompletedgagproject
g thatgaddedgninegnewgholesgtogthegoriginalg9g-gholegcourseg✔✔True
Golfg Shopg salesg ofg $100,000g yieldg grossg marging ofg $30,000,g Whatg isg theg percentg ofg theg costg
ofggoods.g✔✔30%
Whatgisgthegdefinitiongofg"costgofggoodsgsold"g✔✔Costgusedgtogbygstock
Ifgtheggrossgtargetgmargingforgyourggolfgshopgweregaboutg40%,gwhatgwouldgbegthegtargetg%gforgyo
urgcostgofggoodsgsold?g✔✔60%
Accordinggtogthegbusinessgplanninggcoursegmanual,gwhatgisgusuallygtheglargestgcontributorgtogtheg
bottomglinegprofitgofgthegfacilityg✔✔Rounds
g g g g g g g
d Answers 100% Pass
g g g
ThegProcessgforgdevelopinggagbusinessgplangstartsgbeforegyougestablishgtheggoalsgyougwouldglikegt
ogachievegforgthegshopsgcominggyearg✔✔True
Whog shouldg provideg directiong forg creatingg theg businessg plang atg ag Golfg Operationg ✔✔Keyg
Stakeholders
AccordinggtogthegbusinessgplanninggModel,gagbusinessgplangshouldgbuildgongandgrefinegthegoperatio
ngplang✔✔False
Longg-
RangegPlanninggshouldginitiallygassumegangadversarialgrelationshipgbetweengneighboringgfaciliti
g
esgthatgdirectlygcompetegwithgeachgother.g✔✔True
Whatgisgthegusualgbusinessgdestinationgforglonggrangegplanning?g✔✔3-5gyearsgAchievegitsgvision
whatgisgthegmostgsignificantgbenefitgofgstrategicgbusinessgPlanning.g✔✔Providegaglonggtermgvisio
ng&gDestination
HelpinggEstablishgagstartinggpointgforggoals,gObjectives,gandgrelatedgstrategiesgisgangappropriategus
egofgagSWOTganalysis.g✔✔True
Yougaregingthegprocessgofgcompletinggagbusinessgplangforgtheggolfgshop.gInitialgforecastgofgsales,g
expenses,gandgprofitghavegbeengmade.gPastgdataghasgbeenganalyzedgandgimportantginsidegandgoutsid
egfactorsg haveg beeng identified.g Whatg isg theg nextg stepg tog beg takeng towardsg completingg theg pl
an?
✔✔MonitorgPerformance
,AgGolfgProfessionalgisgpurchasinggaggolfgcourse.gThegbusinessgplanghegpresentedgtoghisgbankergi
ncludedghisghistorygofgoperatinggsuccessfullygoperatinggsimilargfacilities,gbudgetgprojectionsgforgt
hegfirstgfivegyearsgunderghisgmanagement,gandgobjectivesgandgstrategiesgforgreachingghisggoals.gTh
egbankergrejectedgthegloangapplicationgbecausegofgmissingginformation.gWhatgimportantgelementg
isgmissinggfromgthegbusinessgplan?g✔✔Currentgstategofgthegbusiness
ThegSWOTganalysisgwouldgtreatgopportunitiesgaregthreatsgasgfactorsgthatgusuallygcangbegcontrolle
dgbygthegfacility.g✔✔False
ThegResultgofgagSWOTganalysisgcouldgbegsufficientgjustificationgforgthegabandonmentgofgagcoreg
businessgfunctiong✔✔True
StaffgevaluationgaregagrelevantgdatagsourcegforgagSWOTganalysisg✔✔True
Howgmightgrevenuesgbegaffectedgatgagnearbygdailygfeegcoursegifgtheglocalgtiregplantghasgmajorglayoffs
✔✔GogDowng(decrease)
Lackg ofg ag missiong statementg isg ang exampleg ofg ag weaknessg thatg ag SWOTg analysisg mightg disclose
✔✔True
Trendsginglocalg consumergspendinggwouldgbegmostgusefulgforgevaluatinggagcoregbusinessg function
✔✔True
Whatg shouldg governg theg decisiong tog pursueg ang opportunity?g ✔✔Financesg -
g Barriersg tog entryg -grecoursesg-gopportunitygcost
Goals,gObjectivesg&gstrategiesg✔✔
,Considergthegfollowinggthegstatementgasgpartgofgthegagbusinessgplan:g"improvegrangegprofitsgandg
customergsatisfaction."gAccordinggtogthegbusinessgplanninggcourse,gthisgstatementgisgangexampleg
ofgangobjective.g✔✔True
Thegnewgmanagergofgagteng-gyearg-
oldgprivategcoursegcurrentlygdoinggangaveragegofg5,g000gtournamentgroundsgpergyear,gproposesgto
g
increasegtournamentgroundsgbyg50%gbygthegendgofgthegnextgyear.gThisgproposalgmeetsgthegcriteria
g
forgangeffectivegbusinessgobjectivegasgpresentedgingthegbusinessgplanninggcoursegmanual.g✔✔Tr
g
ue
"DevelopgandgpromoteggroupglessongprogramsgaimedgatgagwomengandgJuniors"gisgangexamplegofga
ngeffectivegbusinessgobjectives.g✔✔False
WhatgImportantgCharacteristicgisgmissinggingthegbusinessgObjectives.g"Increasegprogshopgsalesgne
xtgyear?"g✔✔Measurables;gHowgaregyouggoinggtogmeasure
WhichgCharacteristicsgofggoalsgandgobjectivesgisgdescribedgasgcapablegofgbeinggobserved,grecorde
d,gandgmeasure.g✔✔Quantifiable
Whatg isgfunctionallygsignificantg differencegbetweenggoalsg andgobjectives?g ✔✔goalg fewgclearlygd
efinedgtargetsgobjectivesgofghowgweggetgtheggoal.
Agfacilitiesgfinancialgobjectivesgcouldgachievedgthroughgoperationalgstrategiesgalone.g✔✔False
ThegFollowinggagendagwasgpartgofgaggolfgrangegbusinessgplan."175gdozengrangegballsgandgrotateg
usagegthreegtimesgagyear.gWho:gHeadgProfessional.gWhen:gEndgofgFirstgQuarter.gCost:g$1500"gA
ccordinggtogthegbusinessgplangcomponentgrepresentedgbygthisgstatement?g✔✔.......
Whatg isg ang exampleg ofg ag financialg Strategy?g ✔✔Borrowingg Money:g Debt:g Reduceg operatin
ggexpense.
, Whatgwouldgbegthegmostgappropriateginitialgresponsegtogagfacilitygincomegnotgmeetinggprojections.
✔✔.......
Financial,gForecast,gandgBudgetsg✔✔
Calculatinggyieldginvolvesgknowinggthegrelationshipgbetweengthegamountgutilizedgandgthegamoun
tgavailable.g✔✔True
Grossg Profitg isg whatg remainsg afterg calculatingg theg differenceg betweeng revenueg andg costg ofg goods
✔✔True
Lineargtrendganalysisgandgbasegyearganalysisgaregexamplegofgverticalganalysisg✔✔False
ThegDivisorgingtheglineargtrendgformulag-
averagegpercentagegisgthegnumbergofgyearsgofgchangegbeinggmeasured.g✔✔True
g
Conductinggagbasegyearganalysisgisgaggoodgchoicegforgagfacilitygthatghasgjustgcompletedgagproject
g thatgaddedgninegnewgholesgtogthegoriginalg9g-gholegcourseg✔✔True
Golfg Shopg salesg ofg $100,000g yieldg grossg marging ofg $30,000,g Whatg isg theg percentg ofg theg costg
ofggoods.g✔✔30%
Whatgisgthegdefinitiongofg"costgofggoodsgsold"g✔✔Costgusedgtogbygstock
Ifgtheggrossgtargetgmargingforgyourggolfgshopgweregaboutg40%,gwhatgwouldgbegthegtargetg%gforgyo
urgcostgofggoodsgsold?g✔✔60%
Accordinggtogthegbusinessgplanninggcoursegmanual,gwhatgisgusuallygtheglargestgcontributorgtogtheg
bottomglinegprofitgofgthegfacilityg✔✔Rounds
