Facility Management III Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
What makes interpretation of quantitative data more desirable than qualitative data? -
CORRECT ANSWER Clearly defined and less susceptible to differences of opinion
P. 2
Why are customer demographics an external factor? - CORRECT ANSWER Outside
the facility's control
P. 4
What type of information is typically provided by qualitative data? - CORRECT
ANSWER Quality of business offerings
P. 2
What example would be considered internal data source for planning purposes? - CORRECT
ANSWER Staffing
P. 4
What type of data is cost of goods sold? - CORRECT ANSWER Quantitative
P. 2
The effectiveness of a golf professional's business plan for managing day-to-day operations in
a golf shop depends on what? - CORRECT ANSWER Internal data sources
,P. 4
How would Opportunities and Threats be categorized in a SWOT analysis? - CORRECT
ANSWER External factors (Positive and Negative)
P. 6
How might the results of SWOT analysis affect core business functions? - CORRECT
ANSWER Considers how each of the core business areas contributes to the overall
performance
P. 6
When conducting a SWOT analysis for human resources, what are examples of relevant data
sources? - CORRECT ANSWER Job descriptions, hiring, training, scheduling,
evaluating, continuing education
P. 6
How might revenues be affected at a nearby daily fee course if the local tire plant has major
layoffs? - CORRECT ANSWER Poor economic local conditions may lead to negative
revenue impacts
P. 6
What is being evaluated when reviewing information data from trends in local consumer
spending? - CORRECT ANSWER Opportunity or Threats
P. 7
,What should govern the decision to pursue an opportunity? - CORRECT
ANSWER How long the opportunity will be viable, which must be acted on
immediately, which can be addressed later, can the facility take advantage of the opportunity
P. 7
What important characteristic is needed to complete the following business objective:
Increase rounds in the next year. - CORRECT ANSWER Specific
P. 11
Which characteristic of goals and objectives is described as capable of being observed,
recorded, measured? - CORRECT ANSWER Specific
P. 11
What is the functionally significant difference between goals and objectives? - CORRECT
ANSWER Objectives refer to short-term outcomes
P. 12
A facility's financial objectives can be achieved through what type of strategies? - CORRECT
ANSWER Financial, Operational, Promotional
P. 15
What is an example of a financial strategy? - CORRECT ANSWER Retiring debt to
increase profits
P. 15
, What would be the most appropriate initial response to facility income not meeting
projections? - CORRECT ANSWER Share performance data that reflects failure of the
strategy with staff members (serves as motivation to address the issue)
P. 18
What metric remains after calculating the difference between revenue and cost of goods sold?
- CORRECT ANSWER Gross Margin
P. 21
What is an example of horizontal analysis? - CORRECT ANSWER Linear trend
analysis
P. 24
What figure is represented in the divisor in the linear trend formula - percent change? -
CORRECT ANSWER Previous year
P. 25
What is the definition of cost of goods sold? - CORRECT ANSWER The value (at
cost) of all merchandise that is sold, stolen, lost, damaged, or destroyed
P. 22
If the gross target margin for your golf shop was 40 percent, what would be the target
percentage for your cost of goods sold? - CORRECT ANSWER 60%
P. 23
QUESTIONS AND CORRECT ANSWERS
What makes interpretation of quantitative data more desirable than qualitative data? -
CORRECT ANSWER Clearly defined and less susceptible to differences of opinion
P. 2
Why are customer demographics an external factor? - CORRECT ANSWER Outside
the facility's control
P. 4
What type of information is typically provided by qualitative data? - CORRECT
ANSWER Quality of business offerings
P. 2
What example would be considered internal data source for planning purposes? - CORRECT
ANSWER Staffing
P. 4
What type of data is cost of goods sold? - CORRECT ANSWER Quantitative
P. 2
The effectiveness of a golf professional's business plan for managing day-to-day operations in
a golf shop depends on what? - CORRECT ANSWER Internal data sources
,P. 4
How would Opportunities and Threats be categorized in a SWOT analysis? - CORRECT
ANSWER External factors (Positive and Negative)
P. 6
How might the results of SWOT analysis affect core business functions? - CORRECT
ANSWER Considers how each of the core business areas contributes to the overall
performance
P. 6
When conducting a SWOT analysis for human resources, what are examples of relevant data
sources? - CORRECT ANSWER Job descriptions, hiring, training, scheduling,
evaluating, continuing education
P. 6
How might revenues be affected at a nearby daily fee course if the local tire plant has major
layoffs? - CORRECT ANSWER Poor economic local conditions may lead to negative
revenue impacts
P. 6
What is being evaluated when reviewing information data from trends in local consumer
spending? - CORRECT ANSWER Opportunity or Threats
P. 7
,What should govern the decision to pursue an opportunity? - CORRECT
ANSWER How long the opportunity will be viable, which must be acted on
immediately, which can be addressed later, can the facility take advantage of the opportunity
P. 7
What important characteristic is needed to complete the following business objective:
Increase rounds in the next year. - CORRECT ANSWER Specific
P. 11
Which characteristic of goals and objectives is described as capable of being observed,
recorded, measured? - CORRECT ANSWER Specific
P. 11
What is the functionally significant difference between goals and objectives? - CORRECT
ANSWER Objectives refer to short-term outcomes
P. 12
A facility's financial objectives can be achieved through what type of strategies? - CORRECT
ANSWER Financial, Operational, Promotional
P. 15
What is an example of a financial strategy? - CORRECT ANSWER Retiring debt to
increase profits
P. 15
, What would be the most appropriate initial response to facility income not meeting
projections? - CORRECT ANSWER Share performance data that reflects failure of the
strategy with staff members (serves as motivation to address the issue)
P. 18
What metric remains after calculating the difference between revenue and cost of goods sold?
- CORRECT ANSWER Gross Margin
P. 21
What is an example of horizontal analysis? - CORRECT ANSWER Linear trend
analysis
P. 24
What figure is represented in the divisor in the linear trend formula - percent change? -
CORRECT ANSWER Previous year
P. 25
What is the definition of cost of goods sold? - CORRECT ANSWER The value (at
cost) of all merchandise that is sold, stolen, lost, damaged, or destroyed
P. 22
If the gross target margin for your golf shop was 40 percent, what would be the target
percentage for your cost of goods sold? - CORRECT ANSWER 60%
P. 23
