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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Who caused the big crisis McDonald's faced because of mechanic's liens?
(a) Clem Bohn.
(b) Fred Turner.
(c) Harry Sonnenburn.
(d) June Martino.

2. Kroc hired Harry Sonnenburn to handle:
(a) Restaurant development.
(b) Sales.
(c) Financing.
(d) Staffing.

3. In response to being informed of a ten percent pay cut by Lily during the Depression, Kroc did all of the following:
(a) Threatened to quit.
(b) Accepted it.
(c) Took four days off.
(d) Said he was insulted.

4. Ray Kroc was born and raised in:
(a) Miami, Florida.
(b) Oak Park, Illinois.
(c) New York City.
(d) Los Angeles, California.

5. Kroc feels that people can accomplish:
(a) Whatever they can afford.
(b) Anything they set their minds to.
(c) Nothing without good contracts.
(d) Nothing without money.

6. The original McDonald brothers restaurant was located in:
(a) Chicago, Illinois.
(b) San Bernadino, California.
(c) Detroit, Michigan.
(d) Miami, Florida.

7. Kroc told his salesmen that when selling, they had to:
(a) Emphasize the good points about the product.
(b) Cut the price.
(c) First sell themselves.
(d) Lie.

8. Kroc and his advisors wanted McDonald's to be known:
(a) For high quality food and uniform methods of preparation.
(b) Flashy surroundings.
(c) Cheap food.
(d) Good service.

9. What did Kroc propose to the brothers?
(a) They purchase more Multimixers.
(b) They open a chain of restaurants using his Multimixers.
(c) They sell him their restaurants.
(d) They introduce new, good items.

10. What did Kroc do the first time he visited the McDonald brothers?
(a) He sampled all of the goods.
(b) He sat in the parking lot and watched the business.
(c) He talked to the customers.
(d) He talked to the staff.

11. McDonalds raised the money to pay the liens by:
(a) Borrowing through a bond issue.
(b) Borrowing from a bank.
(c) Welling stock.
(d) Borrowing from suppliers.

12. What does Kroc feel is required to make money?
(a) Business school graduates.
(b) One must spend money to make money.
(c) Good luck.
(d) Good training.

13. The One-In-a-Million was:
(a) A Prince Castle milk shake.
(b) Kroc's sales strategy.
(c) A sales course.
(d) A new mixing machine.

14. Who were the early McDonald franchises sold to?
(a) Lily Tulip customers.
(b) Existing restaurants.
(c) Prince Castle.
(d) Kroc's golfing friends.

15. How did McDonalds manage to borrow $1.5 million from three insurance companies?
(a) By signing guarantees.
(b) In exchange for 22.5% of their stock.
(c) By give them managing control.
(d) By improving their balance sheet.

Short Answer Questions

1. What product did Kroc try to sell but failed at?

2. What did Kroc envision after talking to the McDonald's?

3. Why did the Kroc's return to Chicago from Miami?

4. According to the agreement, Kroc would receive a franchise fee of:

5. What percent of gross sales did Kroc receive from the franchises?

(see the answer keys)

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