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

Multiple Choice Questions

1. After Ray married Jane, they sold the Woodland Hills house and:
(a) Moved to New York.
(b) Moved to Beverly Hills.
(c) Bought a Malibu beach house.
(d) Returned to Chicago.

2. Which position did Ray Kroc hold in the corporation?
(a) President.
(b) Chief executive officer.
(c) Chairman.
(d) Owner.

3. Kroc decided to restructure the company for administrative purposes by:
(a) Dividing the country into regions.
(b) Opening new stores.
(c) Forming a new company.
(d) Hiring a new vice president.

4. Why did McDonalds have low volume in California?
(a) Staffing problems.
(b) Poor quality.
(c) McDonald's have no identity in the multitude of drive-ins.
(d) Other stores undersold them.

5. What problem was unique to California suppliers?
(a) They wouldn't negotiate with McDonalds.
(b) They weren't reliable.
(c) They formed suppliers cartels.
(d) Some suppliers wouldn't deal with McDonalds.

6. Why did McDonalds introduce the Filet-O-Fish sandwich?
(a) Customers were demanding fish sandwiches.
(b) Kroc liked fish sandwiches.
(c) Catholics could not eat meat on Fridays and McDonalds was losing too much business.
(d) Part of normal menu expansion.

7. Where does Kroc decide he is going at the end of the chapter?
(a) Florida.
(b) Las Vegas.
(c) California.
(d) Portland.

8. After Harry left McDonalds, he:
(a) Sold his stock.
(b) Remained a consultant to the company.
(c) Retired.
(d) Opened a rival business.

9. Why were people wearing chef's hats given free admission to the park the day?
(a) So fans could show their support for McDonald's.
(b) McDonald's sponsored the game.
(c) As an honor to Ray Kroc.
(d) An opposing team player publicly asked if Kroc thought he was talking to a group of short order cooks.

10. Under Fred Turner's leadership, McDonalds:
(a) Raised prices.
(b) Dropped the Filet-O-Fish.
(c) Opened stores in Canada.
(d) Changed their milk shake formula.

11. McDonald's faced opposition from some of their operators in the form of:
(a) Strikes.
(b) The McDonald's Operators Association.
(c) Boycotts.
(d) Court cases.

12. The McDonald's people referred to the Bristol group as:
(a) The Twelve Apostles.
(b) The University Group.
(c) The Group.
(d) The New York Group.

13. What was Harry Sonnenburn involved in at this time?
(a) Preparing to take the company public.
(b) Starting his own company.
(c) Looking for a new job.
(d) Looking to hire a new president.

14. What is The Monotony Index, formulated by Luigi Salvenschi?
(a) Tasks should be rotated so workers don't become bored.
(b) The menu should be varied so customers don't become bored.
(c) The store must have music or entertainment for customers.
(d) The greater the amount of monotony in a town, the better the chances that McDonalds will be successful.

15. Even though McDonald business were booming and the company was showing a profit, they faced the problem of:
(a) Mismanagement.
(b) No cash flow.
(c) Limited growth.
(d) Bad publicity.

Short Answer Questions

1. What baseball team did Ray Kroc purchase?

2. What, according to Kroc, is the common fallacy about money?

3. Filet-O-Fish became a regular part of the menu in:

4. What new rule was made because of Kroc's action at the first home game?

5. The man who helped arrange the financing for the buyout was:

(see the answer keys)

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