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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. In granting franchises, McDonald gives preference to:
(a) Present operators and McDonald's employees.
(b) Candidates with business school degrees.
(c) Candidates under the age of forty.
(d) Employees of competitors.

2. How many regions did McDonalds plan to establish?
(a) Six.
(b) Three.
(c) Nine.
(d) Five.

3. Why did McDonalds have low volume in California?
(a) Staffing problems.
(b) McDonald's have no identity in the multitude of drive-ins.
(c) Other stores undersold them.
(d) Poor quality.

4. As a result of the exclusive licensing agreement, McDonalds:
(a) Had no say in the management issue.
(b) Lost business to competitors.
(c) Received a lower percent of sales.
(d) Couldn't open a store in the area.

5. What was Harry Sonnenburn involved in at this time?
(a) Preparing to take the company public.
(b) Looking for a new job.
(c) Starting his own company.
(d) Looking to hire a new president.

Short Answer Questions

1. The McDonald's people referred to the Bristol group as:

2. Where was Hamburger University located?

3. How long did it take Kroc to straighten out the problems in California?

4. When did McDonald's project they would payoff the loan?

5. Why were people wearing chef's hats given free admission to the park the day?

Short Essay Questions

1. Why does Kroc describe the introduction of new menu items as examples of capitalism in action?

2. Who was Jane Dobbins Green?

3. How did Kroc view the price increase?

4. What was the biggest area of disagreement between Sonnenburn and Kroc?

5. What did Kroc do when the McDonald brothers refused to sell their original San Bernadino location?

6. When Kroc meets Joni Smith, what does he want her to do?

7. Why didn't Kroc make Fred Turner president right after Harry resigned? Why did he want the position himself for one year?

8. What resulted in the Sonnenburn camp and the Kroc camp?

9. Why did Kroc decide to buyout the McDonald brothers?

10. Why did Kroc purchase professional sports teams?

(see the answer keys)

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