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

Multiple Choice Questions

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

2. What problems did McDonalds face in the Washington DC area that Kroc resolved?
(a) Poor management.
(b) Poor quality.
(c) Low volume.
(d) Exclusive licensing .

3. Whic position did Harry Sonnenburn hold in the corporation?
(a) Senior vice president.
(b) Treasurer.
(c) Executive vice president.
(d) President and chief executive officer.

4. The man who helped arrange the financing for the buyout was:
(a) John Gosnell.
(b) John Bristol.
(c) Clem Bohr.
(d) Fred Fideli.

5. How did Ray Kroc meet Jane Dobbins Green?
(a) At a McDonald's store.
(b) At a party.
(c) At a John Wayne premier.
(d) Introduction by mutual friends.

6. Which was not an area of the McDonald's business that Kroc remained active in?
(a) Human resources.
(b) New product development.
(c) None of the above.
(d) Acquisition of new properties.

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

8. Why couldn't McDonalds find a suitable partner for a merger?
(a) There was too much mismanagement.
(b) No one was interested.
(c) Kroc wasn't interested in merging.
(d) Kroc insisted that McDonalds had to be the surviving company.

9. Kroc fulfilled one of his dreams on March 8, 1969 when he:
(a) Set out on a world cruise.
(b) Purchased the Chicago Cubs.
(c) Married Joni.
(d) Formally retired from McDonalds.

10. How many regions did McDonalds plan to establish?
(a) Three.
(b) Five.
(c) Nine.
(d) Six.

11. What McDonald's management philosophy did Kroc apply to baseball?
(a) Seat locations needed to be changed.
(b) Fans weren't concerned with quality.
(c) That customers deserve a quality product or performance for their money.
(d) The game was all that mattered.

12. Kroc assumed the title of president for one year after Harry resigned because he:
(a) He didn't want to share decision making with anyone.
(b) He had no other choice.
(c) Wanted to make changes in the organization.
(d) Couldn't find a replacement for Harry.

13. One of the biggest problems in California was with:
(a) Suppliers.
(b) Real estate.
(c) Staffing.
(d) Space requirements.

14. Where did Kroc meet Joni Smith?
(a) New York.
(b) Chicago.
(c) St. Paul.
(d) San Bernardino.

15. What term does Kroc use to describe new product development?
(a) The response of customer demands.
(b) The menu is limited to his favorite dishes.
(c) Capitalism in action.
(d) The domain of the operators.

Short Answer Questions

1. What did McDonalds do for the first time in January 1961?

2. How did Kroc view prices and price increases?

3. The new design of McDonald buildings included:

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

5. When did Sonnenburn assume this position?

(see the answer keys)

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