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

Multiple Choice Questions

1. How did Ethel feel about Ray going into the Multimixer business?
(a) She had no opinion on the subject.
(b) She threatened to leave him.
(c) She supported the move.
(d) She opposed the idea.

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

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

4. When the McDonald brothers explained their operation, what impressed Kroc?
(a) The quality of the food.
(b) Their prices.
(c) The simplicity and effectiveness of their system.
(d) They were using his Multimixers.

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

6. Sonnenburn began working for a weekly take home salary of:
(a) $75.
(b) $150.
(c) $125.
(d) $100.

7. A phrenologist's report on a four year old Ray Kroc predicted that he would:
(a) Become a coprorate executive.
(b) Was inconclusive.
(c) Work in the good service industry.
(d) Die at an early age.

8. Earl Prince wanted Kroc to:
(a) Go into business selling Multimixers.
(b) Work for Prince Castle.
(c) Cancel his order for cups.
(d) Not contact him.

9. What function did Clem Bohr fulfill?
(a) Train new employeers.
(b) Develop a financing program.
(c) Finding ideal locations for McDonald's restaurants in different parts of the country.
(d) Develop a purchasing system.

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

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

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

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

14. Kroc flew to California:
(a) To view the operation of the McDonald brothers.
(b) On a routine sales call.
(c) For a vacation.
(d) To see customers for paper cups.

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 improving their balance sheet.
(d) By give them managing control.

Short Answer Questions

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

2. Why did the brothers refuse Kroc's original offer?

3. Who were the early McDonald franchises sold to?

4. Harry Sonnenburn had been a vice president for:

5. What was Kroc responsible for having introduced at Price Castle?

(see the answer keys)

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