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PGA PGM 3.0 Level 1 Test Study Guide: Business Planning for Golf Operations, Exams of Business Economics

This study guide provides a comprehensive overview of business planning principles and practices specifically tailored for golf operations. It covers key concepts such as swot analysis, goal setting, financial forecasting, and trend analysis. The guide includes multiple-choice questions and answers, making it a valuable resource for students preparing for the pga pgm 3.0 level 1 exam.

Typology: Exams

2024/2025

Available from 04/02/2025

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PGA PGM 3.0 Level 1 Test Study Guide | 100% Correct Answers | Verified
| Latest 2024 /2025Version
The Process for developing a business plan starts before you establish the goals you would like to achieve
for the shops coming year - ✔✔True
Who should provide direction for creating the business plan at a Golf Operation - ✔✔Key Stakeholders
According to the business planning Model, a business plan should build on and refine the operation plan
- ✔✔False
Long - Range Planning should initially assume an adversarial relationship between neighboring facilities
that directly compete with each other. - ✔✔True
What is the usual business destination for long range planning? - ✔✔3-5 years Achieve its vision
what is the most significant benefit of strategic business Planning. - ✔✔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. - ✔✔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? - ✔✔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
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The Process for developing a business plan starts before you establish the goals you would like to achievefor the shops coming year - ✔✔True

Who should provide direction for creating the business plan at a Golf Operation - ✔✔Key Stakeholders According to the business planning Model, a business plan should build on and refine the operation plan- ✔✔False

Long - Range Planning should initially assume an adversarial relationship between neighboring facilitiesthat directly compete with each other. - ✔✔True

What is the usual business destination for long range planning? - ✔✔3-5 years Achieve its vision what is the most significant benefit of strategic business Planning. -Destination ✔✔Provide a long term vision &

Helping Establish a starting point for goals, Objectives, and related strategies is an appropriate use of aSWOT analysis. - ✔✔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? -Performance ✔✔Monitor

A Golf Professional is purchasing a golf course. The business plan he presented to his banker included hishistory 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 businessplan? - ✔✔Current state of the business

The SWOT analysis would treat opportunities are threats as factors that usually can be controlled by thefacility. - ✔✔False

The Result of a SWOT analysis could be sufficient justification for the abandonment of a core businessfunction - ✔✔True

Staff evaluation are a relevant data source for a SWOT analysis - ✔✔True How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs - ✔✔Go Down (decrease)

Lack of a mission statement is an example of a weakness that a SWOT analysis might disclose - ✔✔True Trends in local consumer spending would be most useful for evaluating a core business function - ✔✔True

What should govern the decision to pursue an opportunity? -- opportunity cost ✔✔Finances - Barriers to entry - recourses

Goals, Objectives & strategies - ✔✔ Consider the following the statement as part of the a business plan: "improve range profits andcustomer satisfaction." According to the business planning course, this statement is an example of an objective. - ✔✔True The new manager of a ten - year - old private course currently doing an average of 5, 000 tournamentrounds 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 planningcourse manual. - ✔✔True

Linear trend analysis and base year analysis are example of vertical analysis - ✔✔False The Divisor in the linear trend formula - average percentage is the number of years of change beingmeasured. - ✔✔True

Conducting a base year analysis is a good choice for a facility that has just completed a project thatadded nine new holes to the original 9 - hole course - ✔✔True

Golf Shop sales of $100,000 yield gross margin of $30,000, What is the percent of the cost of goods. - ✔✔30%

What is the definition of "cost of goods sold" - ✔✔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 ofgoods sold? - ✔✔60%

According to the business planning course manual, what is usually the largest contributor to the bottomline profit of the facility - ✔✔Rounds

What is the formula for Merchandise Net Operating Income? -Expense ✔✔Revenue Generated - Operating

What events would cause a change in the forecast for the golf shop expense? - ✔✔

What metric should be part of every forecast regardless of the type of the facility - ✔✔ A Vision defines the short - Term objectives that must be accomplished in the upcoming year. - ✔✔False

A Facility profile defines the overall culture of the business - ✔✔True

The projected customer base of certain golf facilities located in the United States could assume membersdrawn from international Markets. - ✔✔True

A yield Analysis is used to compile a facilities historical data on the number of rounds played. - ✔✔True What is the process called when a manager reviews total rounds to determine who is playing and when?- ✔✔Yield Analysis

Mission Statements should include a definition of the facility's underlying financial model. - ✔✔False A sound mission statement defines the long term vision and core values of a facility - ✔✔True

It is appropriate to address the role of the employee in the mission statement - ✔✔False Assessing the current state of business. - ✔✔ The interpretation of the quantitative data is less susceptible to differences of opinion than qualitive data- ✔✔True

Customer demographics is an internal factor - ✔✔False What type if information is typically provided by qualitive data. - ✔✔Likes; Dislikes; Experiences

What examples would be considered internal data sources for planning purposes -etc.. ✔✔- Finances - Cogs

Cost of goods sold is an example of qualitive date - ✔✔False

What is one technique used to validate assumptions - ✔✔ What best describes sensitivity analysis - ✔✔ Next year you will be replacing a long term golf - shop employee with a new assistant who hasconsiderable 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. - ✔✔They will bring in more revenue. In his first year at a golf club, The Head Professional has made some assumptions about howimprovements in customer service will increase the coming year's sales volume. What Technique could be used to best test these assumptions. - ✔✔Percent change, historical analysis Your employer is contemplating an increase in weekend green fees. She would like to know how thisincrease might affect the number of rounds played. What would provide her with the best estimate. - ✔✔Past Round History. Opening a new driving range 5 miles away would be relevant factor for making assumptions about thenumber of rounds likely to be played in the coming year. - ✔✔True

A capital budget is used for large value items such as equipment and fixtures - ✔✔True The utility of a business plan for managing day to day operations depends on the accuracy of yourassumptions - ✔✔True

in a cash budget, transactions are only recognized at the time they occur - ✔✔True Depreciation allowances must be accounted for in a cash flow budget. - ✔✔True

Your finalized operating budget will show whether or not you have the money to pay - ✔✔False A Cash budget records cash and credit card transactions - ✔✔true

What information should be basis of a golf shop's 12 month operating budget - ✔✔

What is the correct Budget category for labor forecast - ✔✔ A Cash Flow budget is primarily concerned with what measure - ✔✔Cash Flow An important feature of a cash budget is cash flow patterns for the past 12 months are clearly indicated - ✔✔True

Monitoring performance - ✔✔ What method do managers use to increase their knowledge of financial performance and controls - ✔✔

What is the most significant benefit of a POS system to a manager - ✔✔Real time sales tracking what does performance metric provide - ✔✔

What us is one example of a performance metric - ✔✔ Raising and lowering the green fees is a reasonable response to an under performing budget - ✔✔False Revising forecast and budgets is one way to keep a business solvent in the event of unforeseen externalchanges - ✔✔True

Changing the budget when the facility is falling short of budget projections is both unacceptable andunproductive - ✔✔True

Career Lattice - combo of sideways and upward progression Why is it important to develop a vision statement -ideal future as PGA Pro ✔✔Provides direction to career - brief description of

"increase merchandise sales in the golf shop" is an example of a SMART goal. - ✔✔False what is provided in the "strategies to Succeed" section of the career fitness manual? -starting point for developing goals ✔✔helpful

Core skills are those that are useful in many golf industry positions - ✔✔True

How can you utilize the Work experience portfolio to write a resume -it to a particular position ✔✔to focus on content and align

What part of the resume concisely describes a summary of skills and qualification gained from workexperience as a golf professional? - ✔✔Action / Power Statements.

Responsible, involved, and helpful are effective action words to create a power statement - ✔✔False What are ways to connect with connect with other professionals who have industry experience to gatherinformation about the industry. - ✔✔Info interviewing / Job Shadowing

A Resume should begin with listing education first and the work experience - ✔✔False Career Advancement Strategies - ✔✔

It is recommended a resume included all relevant golf specific skills - ✔✔True

Why should a resume be updated? - ✔✔demonstrates your experience value and Skills

What are the key points to remember when using a power statement -result based ✔✔Short concise bullet points -

Increased hard good sales by sales 25% by offering multiple demo days is an example of a powerstatement - ✔✔True

Why is it it important to for the employer to determine the relevant skill sets when hiring? - ✔✔Employer often hire for one set of skills but replace pro's after determining different set of skills is needed.

"Brought in more events increasing revenues" is an example of a power statement. - ✔✔True Why is it important for employer to determine the relevant skills sets when hiring? -hire for own set of skills but replace pros after determining diff set of skills needed ✔✔employers often

What is a quantitative result produced by a rainmaker. - ✔✔Drives Revenue. PGA member who has earned specialized status is qualified to pursue the PGA Master ProfessionalProgram - ✔✔False

Career Consultants provide fee-based services to employers - ✔✔False what is the appropriate source for providing a member or association with the help in job working,career counseling, and resume writing? - ✔✔PGA career consultants through PGA.org

The work experience portfolio is a document used to help validate the candidates skill sets - ✔✔True What are common mistakes to avoid when networking? - ✔✔Asking for favors excessive demands.

What is the primary product of the golf business according to the customer relations manual. - ✔✔Golfers experiences at facility and most direct way to create a positive experience to provide exceptional service What single variable has research shown to be most closely associated with long term financialperformance - ✔✔Relative perceived product quality, what customers defined as a quality

A moment of truth occurs when an employee evaluates the service they are going to provide - ✔✔False Moments of truth occur each time facility employees come into contact with customers - ✔✔True an interactive "moment of truth" opportunity occurs when a customer bag has been incorrectly taggedat the bag drop - ✔✔True

According to the customer relations manual, what must accompany good intrapersonal skills to achievehigh quality relations with your members and customers. - ✔✔producers to guide and support them.

An Upset customer is concerned about the lack of action to speed up play. He seeks the golf professionalto express his displeasure. What needs to be on place for the golf professional to resolve the situation. - ✔✔Challenging situation; intrapersonal skill; show understanding A clear policy on how to handle customers who arrive late for a tee time is an example of a procedure tobe followed in a routine situation - ✔✔False

The Head Professional is explaining the club's "no starting from the 10th tee" policy to a foursome thathas attempted to do so. He explains the reasoning for the policy and politely extends an invitation to place them as the next group off #1 tee. This scenario illustrates the concept of the dual perspective ofcustomer relations interactions. - ✔✔False-this illustrates the procedure and skills took in place of handling the situation The task-relationship connection concept allows that a foundation for successful future relations can bebuilt by attending to the customer relationship without the presence of a task focus. - ✔✔false- when

golf professionals attend to the relationship and have a sufficient task focus, they build a solid foundationfor effective customer relations with almost any customer

Aside from relationships, what do all customer interactions involve? -provider and customer are trying to accomplish ✔✔the task-what the service

Time is a factor affecting the value of any resource. -material or time based ✔✔true-resources may be human, financial, and

Expectations are a key requirement for good customer relations - ✔✔true Running out of scorecards indicates a breakdown of what key requirement for good customer relations?- ✔✔resources

What is defined as the means available to support staff in completing a task? - ✔✔resources Detailed policies and procedures lie at the heart of which one of the three elements necessary tosupport the delivery of superior customer service? - ✔✔systems

The Head Professional made the following observations at the staging area for a shotgun event: Area was fully staffed.Necessary supplies were available. Cars were missing towels, scorecards, and divot sand. A breakdown in what key customer relations requirement would most likely account for this situation? - ✔✔systems

Interaction Strategies - ✔✔

A good way to implement the "involving" strategy is to provide clear and specific directions and thenmodify them as needed to gain the cooperation of others. - ✔✔true

Offering to suggest some options would be an example of employing the "supporting" strategy with amember who has arrived ten minutes after his tee time on a fully booked day. - ✔✔false-convincing strategy: proposing one or more options/solutions A long-time member of your golf committee is reluctant to endorse a tournament format change thatthe head professional has proposed. Which interaction strategy would likely be most helpful in resolving the situation? - ✔✔convincing strategy

What situations call for initiating the "involving" strategy? -lead others to a solution and the employee does not directly supervise or control behaviors related to ✔✔when employee is not in the position to the outcome In what situations would a staff member most likely rely on the "supporting" strategy? -to get the commitment of the customer to carry out a particular solution or act in a certain way ✔✔when trying

When would one most likely rely on the "convincing" strategy? -goods or services to customers ✔✔when employee is trying to provide

A co-worker is having difficulty setting up a merchandise display. What strategy would you use to assisthim if your intent were to avoid his losing a sense of ownership in creating the display? - ✔✔supporting strategy A member complains about how the club guest policy affects his adult children. However, the policy hasbeen carefully developed and is widely supported by the membership. Which interaction strategy is the best choice for defending the policy? - ✔✔convincing strategy

In what circumstance would adopting the "directing" strategy be appropriate? -customer know how to proceed with a specific task; instructing a student during a lesson; stating ✔✔when letting a requirements/rules to a customer; taking charge in a chaotic/confusing situation that needs strongleadership or gaining control of a situation that is out of control

A golfer arrives ten minutes after his assigned tee time on a booked solid day. Most likely, which strategyshould you use to explain why his tee time was given to someone else? - ✔✔directing strategy-stating requirements or rules to a customer Last year a special membership committee suggested that a new parking and bag drop procedure beadopted as club policy. The procedure was tested and worked out very well. What interaction strategy would the head professional likely rely on to obtain board approval for the change? -strategy-desired outcome is agreement ✔✔convincing

When a manager modifies an idea to include other people's contributions, they are most likelyemploying what interaction strategy? - ✔✔involving strategy-desired outcome is participation

A customer arrives late for his assigned tee time on a solidly booked day. He says this is the second timehe has been late because a full parking lot forced him to wait for a parking place. He wants assurance from the head professional that this situation will be resolved in the near future. What is the mostappropriate interaction strategy for guiding the head professional's response? - ✔✔supporting strategy- when seeking support, feeling the need to be understood; desired outcome is commitment A member complains about how the guest policy affects his adult children. The head professional knowsthat the policy is unpopular with many members. What strategy might he use effectively in this situation? - ✔✔convincing strategy-providing a compelling rationale; desired outcome is agreement Intrapersonal Skills - ✔✔ Drawing others out and getting them to actively express their ideas, feelings, and points of view bestdescribes the interpersonal skill of "showing understanding." - ✔✔false-"encouraging open expression" - drawing others in not out Helping others to look at a situation from a fresh perspective to see new possibilities describes the"providing a compelling rationale" interpersonal skill. - ✔✔false- "reframing difficult situations"

One way to use the skill of "reframing difficult situations" is to invite others to consider fresh solutions toa challenging situation. - ✔✔True

During contract negotiations between a landscaping contractor and her golf facility, the headprofessional was able to successfully communicate her role and intent in asking for a meeting. Identify the interpersonal skill utilized in this situation. - ✔✔stating your purpose clearly What is the interpersonal skill defined as "communicating the benefits of pursuing a particular course ofaction?" - ✔✔providing a compelling rationale

What interpersonal skill lies at the heart of all the others? -customer relations model revolves around trust ✔✔acting with integrity-at the core PGA

Telling others how their behavior affected you is an example of what interpersonal skill? -inviting specific feedback"-describes the other's party's behavior and its effects ✔✔"giving and

The best time to use the interpersonal skill of "stating your purpose clearly" is when you need to buildtrust and purpose. - ✔✔false-"acting with integrity"

One might focus on the implication of what is being said to "show understanding." - ✔✔true Stating your purpose clearly typically requires you to list important criteria that need to be addressed ifthe problem is to be satisfactorily resolved. - ✔✔false- "providing a compelling rationale"

What interpersonal skill is most readily supported in the greet phase of the positive engagementprocess? - ✔✔showing understanding

Which interpersonal skill is most appropriate to use first when you find yourself in a repeating cycle ofarguments and counter arguments with a customer? - ✔✔showing understanding and reframing difficult situations A customer is upset when he discovers his tee time reservation has been lost. Which interpersonal skillwould be most useful in resolving the situation? - ✔✔showing understanding

To help others understand your intent, which interpersonal skill would you employ? -purpose clearly ✔✔stating your

Reframing difficult situations allows the golf professional to accomplish what outcome? -parties to look at a challenging situation from a fresh perspective in order to find a common ground and ✔✔helps all new possibilities. When you want to know what someone thinks about your actions it would be useful to rely on the skillof "giving and inviting specific feedback." - ✔✔true

Assume an employee has said that you do not understand why he is using the selling techniques hedemonstrated. How would you use the skill of "giving and inviting specific feedback" in this situation? - ✔✔gives each party the chance to clarify any misunderstanding A customer tells the head professional that he can purchase the same club from a discount shop for $25less. The head professional responds, "We strive to offer our products at a fair price supported by outstanding service and expertise." Which interpersonal skill did the head professional exhibit with thisresponse? - ✔✔providing a compelling rationale

According to the interpersonal skills model used in the Customer Relations course, which interpersonalskill best describes what the following statement by the head professional represents: "While I would like to put more course marshals on the fairways to help solve the crowd control problem, we don't havethe budget and have not been able to attract enough qualified volunteers." - ✔✔providing a compelling rationale What is the reason behind the skill involved when the head professional asks his assistant, "What is youropinion on limiting tournaments to active members?" - ✔✔encouraging open expression

A customer tells the head professional that he can get the same set of clubs for $45 less at a discountstore. After acknowledging the customer's concerns, he said, "I want to keep you as a satisfied customer, so why don't we take a minute to go over the kinds of services we are able to offer through our proshop." Which interpersonal skill did the head professional use in her follow-up response? - ✔✔providing a compelling rationale