PGA Level 1 Facility Management

T/F "Develop and promote group programs aimed at women and juniors" is an example of an effective business objective.

False

T/F COGS is an example of qualitative data

False

T/F Mission Statements should include a definition of the facility's underlying financial model

False

T/F The SWOT analysis would treat opportunities and threats as factors that usually can be controlled by the facility

False

T/F a facility's financial objectives could be achieved through operational strategies alone

False

T/F linear trend analysis and base year analysis are examples of vertical analyses.

False

T/F the utility of a business plan for managing day-to-day operations depends on the accuracy of your assumptions

False

Raising or lowering green fees is a reasonable response to an under performing budget

False

Next year you will be replacing a long time golf shop employee with a new assistant who has considerable sale experience and selling skills. You will be paying this new staff member a higher salary. What is a reasonable assumption you will make.

They will bring in more revenue

A capital budget is used for large-value items such as equipment and fixtures

True

A cash budget records cash and credit transactions

True

T/F It is appropriate to address the role of the employee in the mission statement

True

T/F Long range planning should initially assume an adversarial relationship between neighboring facilities that directly compete with eachother

True

T/F Opening a new driving range 5 miles away would be relevant factor for making assumptions about the number of rounds likely to played in the coming year

True

T/F Staff Evaluations are a relevant data source for a SWOT analysis

True

T/F The interpretation of quantitative data is less susceptible to differences of opinion than qualitative data.

True

if the gross target margin for your golf shop is 40% what would be the target COGS

60%

Golf shop sales of 100k and a gross margin of 30k what is the percentage of COGS?

70%

An Important feature of a cash budget is a cash flow patterns for the past 12 months are clearly indicated.

True

Depreciation allowances must be accounted for in a cash flow budget

True

What is the process called when the manager reviews total rounds to determine who is playing and when?

Yield Analysis

A golf professional is purchasing a golf course. The Business plan he presented to his banker included his history of successfully operating similar facilities, budget projections for the first 5 years under his management, and objectives and strategies for reaching his goals. The banker rejected his loan application because of missing information. What important element is missing from the business plan?

Current State of Business

What is the formula for merchandising net operating income

Revenue Gen.-Operating Exp

What is the baseline reason for analyzing variances

to know why and how they have occurred, know if it it is good or bad etc.

What is the usual business destination for long-range planning

3-5 Years; Achieve its vision

What is an example of a financial strategy

Borrowing Money, Debt, Reduce operating expenses

A cash Flow budget is primarily concerned with what measure?

Cash Flow

Definition of COGS

Cost used to buy stock

T/F According tho the Business Planning Model, a business plan should build on and refine the operational plan.

False

T/F Customer demographics is an internal factor

False

Your finalized operating budget will show whether or not you have the money to pay

False

What type of information is typically provided by qualitative data?

Likes, Dislikes, Experiences

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 you provide her with the best estimate

Past round history

In his first year at a golf club, the HP has made some assumptions about how improvements in customer services will increase the coming years sales volume. What technique could be used to best test these assumptions

Percent change, Historical analysis

which characteristic of goals and objectives is described as capable of being observed, recorded, and measured.

Quantifiable

What is the most significant benefit of a point-of-sale system to a manager?

Real Time Sales tracking

In a cash budget, transactions are only recognized as they occur

True

T/F Helping establish a starting point for goals, objectives, and related strategies is an appropriate use of SWOT

True

T/F The projected customer base of certain golf facilities located in the US could assume members drawn from international markets.

True

T/F calculating yield involves knowing the relationship between the amount utilized and the amount available.

True

T/F lack of a mission statement is an example of a weakness that a SWOT analysis might disclose

True

T/F the divisor in the linear trend formula-average percentage is the number of years of change being measured

True

What is the most significant benefit of strategic business planning

provides a long term vision and destination

T/F A vision defines the short term objectives that must be accomplished in the upcoming year

False

What should govern the decision to pursue an oppurtunity

Finances, barriers to entry, resources, opportunity cost.

What examples would be considered internal data sources for planning purposes

Finances, cogs, etc.

What information would be most useful to the planning team interested in measuring the facility's past or current success

Historical, yield analysis

Who should provide direction for creating the business plan at a golf operation

Key Stakeholders

What important characteristic is missing in the business objective;" increased pro shop sales next year"

Measurable; how are you going to measure.

You are in the process of completing a business plan for the golf shop. Initial forecasts of sales, expenses and profit have been made. Past data has been analyzed and important outside factors have been identified. What is the next step to be taken towards completing the plan.

Monitor Performance

According to the Business Planning Course Manual, what is usually the largest contributor to the bottom line profit of the facility

Rounds

Changing the budget when the facility is falling short of budget projections is both unacceptable and unproductive

True

Revising forecasts and budgets is one way to keep a business solvent in the event of unforeseen external changes

True

T/F A facility profile defines the overall culture of the business

True

T/F A sound mission statement defines the long-term vision and core values of a facility.

True

T/F A yield analysis is used to compile a facility's historical data on the number of rounds played

True

T/F Assumptions are necessary for forecasting numbers

True

T/F COnduting a base year analysis is a good choice for a facility that has just completed a projected that added 9 holes to the course

True

T/F Consider the following statement as part of a business plan: "improve range profits and customer satisfaction." According to the business planning course, this statement is an example of an objective

True

T/F Financial forecasts should be based on historical data derivied from a linear trend analysis

True

T/F Gross Profit is what remains after calculating the difference between revenue and cost of goods.

True

T/F The new manager of a 10 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. This proposal meets the criteria for an effective business objective as presented in the Business Planning Course Manual

True

T/F The process for developing a business plan starts before you establish the goals you would like to achieve for the shop's coming year.

True

T/F The results of a SWOT analysis could be sufficient justification for the abandonment of a core business function.

True

T/F The utility of your business plan for for managing day-to-day operations in a golf shop depends on your ability to manage internal factors

True

T/F Trends in local consumer spending would be most useful for evaluation a core business function

True

How might revenues be affected at a nearby daily fee course if the local tire plant has major layoffs

go down

what is the functionality significant difference between goals and objectives

goals few clearly defined targets objectives how do we get to the goal

What best describes sensitivity analysis.

how different values of an independent variable affect a particular dependent variable under a given set of assumptions. This technique is used within specific boundaries that depend on one or more input variables.