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

Multiple Choice Questions

1. Why did Ray move to New York?
(a) Better job prospects.
(b) His family moved due to his father's promotion.
(c) He wanted a change of scene.
(d) Ray was promoted to stock broker.

2. Why couldn't the Des Plaines franchise be an exact duplicate of the San Bernadino original?
(a) Because of differences in climate.
(b) Because of union requirements.
(c) It was too costly.
(d) There was not enough space.

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

4. Why was Kroc impressed with the french fries?
(a) They were cooked in oil that wasn't used for anything but french fries.
(b) They were cheap.
(c) They came frozen in packages.
(d) He wasn't impressed by the french fries.

5. What did the McDonald brothers have an architect working on?
(a) A new warehouse.
(b) A house.
(c) A remodeled restaurant.
(d) The design for a new drive-in building.

6. What did Ray enjoy most about high school?
(a) Algebra.
(b) History.
(c) English.
(d) Debating.

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

8. Who did Kroc used to work for?
(a) Lily Tulip Cup Company.
(b) The state of California.
(c) Hoover Company.
(d) Ford Motor Company.

9. How did the McDonald brothers pioneer the fast-food business?
(a) By buying a new restaurant.
(b) By going to school and learning new techniques.
(c) They weren't the pioneers of fast-food restaurants.
(d) By revamping their existing restaurant and providing a limited menu.

10. After the real estate job ended, Ray supported his family by:
(a) Selling encyclopedias.
(b) Working in a restaurant..
(c) Playing piano in a speakeasy.
(d) Selling vacuum cleaners.

11. What was one of the most successful elements of the McDonald's brothers operation?
(a) Soft drinks.
(b) Hamburgers.
(c) Shakes.
(d) French fries.

12. According to the agreement, Kroc would receive a franchise fee of:
(a) $950.
(b) $1,500.
(c) $250.
(d) $500.

13. Who did Kroc recommend to open restaurants for them?
(a) They had no recommendations.
(b) Kroc himself.
(c) His employer.
(d) They hire a manager.

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

15. Fred Turner was hired to:
(a) Implement a new purchasing system.
(b) Improve efficiency.
(c) Handle financing.
(d) Help new operators of franchises.

Short Answer Questions

1. What product was Kroc selling before forming McDonalds?

2. Where did Kroc locate his first franchise?

3. Kroc views all of the following as McDonald's strengths:

4. Kroc's simple philosophy is that:

5. How much money did McDonald's have to raise to pay off the mechanic's liens?

(see the answer keys)

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