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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. For more than three decades, the fast food industry uses what federal agency to finance new restaurants?
(a) The International Frahchise Association.
(b) The U.S. Treasury.
(c) The Small Business Administration.
(d) The National Loan Association.

2. What is Ray Kroc doing when he first visited McDonald's in 1954?
(a) Selling milkshake mixers.
(b) Looking for work.
(c) Asking for directions.
(d) Eating out for the first time.

3. What is responsible for converting the Idaho desert into lush farmland?
(a) Private irrigation contracts.
(b) The Snake River flood.
(c) The Snake River Reclamation Project.
(d) Rainfall pattern changes.

4. Who does sales pitches at FutureCall?
(a) An operator.
(b) A micro manager.
(c) A teleservices representative.
(d) A computer advocate.

5. What is the initial franchising fee Ray Kroc charges to open a McDonald's?
(a) $1.
(b) $950.
(c) $118,000.
(d) $15,000.

Short Answer Questions

1. Which county was planning to build a highway right through the heart of Hank's ranch?

2. Walt Disney buys 160 acres of what in Anaheim to build Disneyland?

3. Where is the food that is "assembled" at Taco Bell restaurants actually made?

4. At the "Success" seminar, what is the prize for winning the dance contest?

5. What do the McDonald brothers call their system of service?

Short Essay Questions

1. What factors may have contributed to the rancher Hank's suicide?

2. What is the rancher Hank's form of range management?

3. What causes the wide gulf between Colorado Springs and Pueblo?

4. What are some of the requirements made in franchise contracts offered by fast food chains?

5. Why does Carl Karcher think Anaheim is "heaven" when he moves there from Ohio?

6. How does the consumer react to McDonald's switch from fresh to frozen french fries?

7. What are some of Carl Karcher's ideas that should have remained on the drawing board?

8. What strategy does Ray Kroc's business partner, Harry J. Sonneborn, devise to ensure McDonald's financial success?

9. How does the character Ronald McDonald come to be?

10. According to one account, why does the deal to put McDonald's in Disneyland initially fall through?

(see the answer keys)

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