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

Multiple Choice Questions

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

2. What new rule was made because of Kroc's action at the first home game?
(a) Only players and game officals can be on the field.
(b) A limit on the number of promotions.
(c) Only the official announcer can use the public address system.
(d) The park must be landscaped according to league requirements.

3. What was June Martino's nickname?
(a) Snoopy.
(b) The Business Lady.
(c) The Gentle Lady.
(d) The Vice-President of Equilibrium.

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

5. How many hamburgers had McDonalds sold by July 1966?
(a) Two billion.
(b) Three billion.
(c) One billion.
(d) Five hundred million.

6. The major reason why Kroc wanted to end the association with the McDonald brothers was:
(a) They demanded managerial positions.
(b) Their refusal to alter any of the terms of the original agreement.
(c) They interferred too much in company decisions.
(d) They refused to sell their San Bernardino store to the corporation.

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

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

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

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

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

12. What is Kroc's theory about size of stores and growth?
(a) All stores must be of uniform size.
(b) He had no theory of the subject.
(c) If you think small, you stay small.
(d) Begin with small stores and let them expand.

13. In exchange for the loan, McDonald's would:
(a) Change their mangement policies.
(b) Pay .5% of gross sales for three periods.
(c) Yield managerial control until the loan is repaid.
(d) Give the group a seat on the board.

14. What did McDonalds do for the first time in January 1961?
(a) Advertised on television.
(b) Introduced Filet-O-Fish.
(c) Raised the price of hamburgers.
(d) Lowered prices.

15. After marrying Joni and giving the Beverly Hills house to Jane, the Kroc's:
(a) Moved to Chicago.
(b) Lived on his Yacht.
(c) Bought another house in Beverly Hills.
(d) Moved to his Southern California ranch.

Short Answer Questions

1. Who did Kroc name as president?

2. McDonalds lost business after the price increase. How long did it take for the customer counts to recover?

3. Kroc, with McDonald offices in Chicago and Los Angeles,:

4. What price did the McDonald brothers demand?

5. Kroc decided to restructure the company for administrative purposes by:

(see the answer keys)

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