PGA Golf Management 3.0 Level 3 Exam
ACTUAL QUESTIONS AND CORRECT
ANSWERS
What makes interpretation of quantitative data more desirable than qualitative data? - Correct
answers✔Quantitative information is clearly defined and less susceptible to differences of
opinion among people interpreting the data
Why is customer demographics an external factor? - Correct answers✔Because 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? - Correct
answers✔Qualitative 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? - Correct
answers✔These 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? - Correct answers✔Quantitative Data
What information would be most useful to the planning team interested in measuring the
facility's past or current successes? - Correct answers✔Quantitative Data
The effectiveness of a golf professional's business plan for managing day-to-day operations in a
golf shop depends on what? - Correct answers✔Operational Strategies
,How would opportunities and threats be categorized in a SWOT analysis? - Correct
answers✔External Factors
How might the results of a SWOT analysis affect core business functions? - Correct answers✔A
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? - Correct answers✔Job 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? - Correct answers✔There 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? - Correct answers✔If 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? - Correct answers✔Whether a threat is internal or external
What should govern the decision to pursue an opportunity? - Correct answers✔The results of the
SWOT analysis
What criteria must be used to improve the following objective: "Improve range profits and
customer satisfaction" ? - Correct answers✔SMART 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? - Correct answers✔The objective is not
realistic
Provide examples of horizontal analyses. - Correct answers✔Linear Trend Analysis and Base
Year Analysis
What figure is represented in the divisor in the linear trend formula? - Correct answers✔Previous
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? - Correct answers✔Base 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? - Correct answers✔Cost 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? - Correct answers✔total 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? - Correct answers✔Rounds
What is the formula for Merchandise Net Operating Income? - Correct answers✔Revenue -
(Cost of Goods Sold + Operating Expenses)
, What events would cause a change in the forecast for golf shop expenses? - Correct
answers✔Major 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? - Correct
answers✔Rounds
You are most concerned about a decline in business growth. What method would be most
effective in portraying your overall financial history? - Correct answers✔Linear Trend Analysis
For the purpose of developing a business plan, what is the best description of trend analysis? -
Correct answers✔The 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? - Correct
answers✔Use Linear Trend Analysis
What is one of the techniques used to validate assumptions? - Correct answers✔Scenarios and
Sensitivity Analysis, Historical Review, Expert Review
What best describes sensitivity analysis? - Correct answers✔Generating 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? - Correct answers✔Productivity
ACTUAL QUESTIONS AND CORRECT
ANSWERS
What makes interpretation of quantitative data more desirable than qualitative data? - Correct
answers✔Quantitative information is clearly defined and less susceptible to differences of
opinion among people interpreting the data
Why is customer demographics an external factor? - Correct answers✔Because 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? - Correct
answers✔Qualitative 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? - Correct
answers✔These 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? - Correct answers✔Quantitative Data
What information would be most useful to the planning team interested in measuring the
facility's past or current successes? - Correct answers✔Quantitative Data
The effectiveness of a golf professional's business plan for managing day-to-day operations in a
golf shop depends on what? - Correct answers✔Operational Strategies
,How would opportunities and threats be categorized in a SWOT analysis? - Correct
answers✔External Factors
How might the results of a SWOT analysis affect core business functions? - Correct answers✔A
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? - Correct answers✔Job 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? - Correct answers✔There 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? - Correct answers✔If 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? - Correct answers✔Whether a threat is internal or external
What should govern the decision to pursue an opportunity? - Correct answers✔The results of the
SWOT analysis
What criteria must be used to improve the following objective: "Improve range profits and
customer satisfaction" ? - Correct answers✔SMART 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? - Correct answers✔The objective is not
realistic
Provide examples of horizontal analyses. - Correct answers✔Linear Trend Analysis and Base
Year Analysis
What figure is represented in the divisor in the linear trend formula? - Correct answers✔Previous
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? - Correct answers✔Base 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? - Correct answers✔Cost 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? - Correct answers✔total 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? - Correct answers✔Rounds
What is the formula for Merchandise Net Operating Income? - Correct answers✔Revenue -
(Cost of Goods Sold + Operating Expenses)
, What events would cause a change in the forecast for golf shop expenses? - Correct
answers✔Major 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? - Correct
answers✔Rounds
You are most concerned about a decline in business growth. What method would be most
effective in portraying your overall financial history? - Correct answers✔Linear Trend Analysis
For the purpose of developing a business plan, what is the best description of trend analysis? -
Correct answers✔The 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? - Correct
answers✔Use Linear Trend Analysis
What is one of the techniques used to validate assumptions? - Correct answers✔Scenarios and
Sensitivity Analysis, Historical Review, Expert Review
What best describes sensitivity analysis? - Correct answers✔Generating 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? - Correct answers✔Productivity
