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

Multiple Choice Questions

1. Kroc's view on taking risks is that risk:
(a) He has no view.
(b) Should be taken cautiously.
(c) Is part of any reasonable business challenge.
(d) Is to be avoided.

2. What concept did Kroc promote when selling paper cups?
(a) Lower breakage.
(b) Carry-out business.
(c) Lower staffing.
(d) Less clean-up.

3. It cost Kroc how much to buyout the Frejlack Ice Cream interest in McDonalds?
(a) $5,000.
(b) $10,000.
(c) $50,000.
(d) $25,000.

4. What was not a part of the original McDonald's menu?
(a) Hamburgers.
(b) Cheeseburgers.
(c) BLT sandwich.
(d) French fries.

5. What product was Kroc selling before forming McDonalds?
(a) Real estate.
(b) Multimixer.
(c) Used cars.
(d) Vacuum cleaners.

6. What percent of Kroc's share of gross sales did the McDonald brothers receive?
(a) .3%
(b) .1%
(c) 1%
(d) .5%

7. Kroc and his staff decided that the best growth path was to:
(a) Open anywhere the franchise buyer wanted.
(b) Select locations and develop the restaurants themselves.
(c) Limit franchise sales to maintain high prices.
(d) Own the restaurants themselves.

8. Kroc's original contact with the McDonald brothers provided that each franchise unit:
(a) Had to be an exact copy of the original.
(b) Ccould not use the McDonald name.
(c) Could be designed in any way.
(d) Could be designed in any way but had to use the colors of the original.

9. How many items were being sold by McDonald restaurants at this time?
(a) Three.
(b) Nine.
(c) Twelve.
(d) Six.

10. What was Kroc's net worth in 1959?
(a) $250,000.
(b) $50,000.
(c) $100,000.
(d) $90,000.

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

12. The first business Ray opened was:
(a) A talent agency.
(b) A delivery service.
(c) A restaurant.
(d) A music store.

13. Harry Sonnenburn had been a vice president for:
(a) Dairy Queen.
(b) Walgreen's.
(c) Tastee-Freeze.
(d) Kresge.

14. What was the purpose of the Franchise Realty Corporation?
(a) To sell restaurants.
(b) To sell franchises.
(c) To handle the franchise real estate end of the franchising.
(d) To provide a slush fund for the franchises.

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

Short Answer Questions

1. Kroc flew to California:

2. What was Kroc's biggest paper cup account?

3. Which product did Ralph Sullivan pioneer?

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

5. Which state pioneered the drive-in food business?

(see the answer keys)

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