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

Multiple Choice Questions

1. 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 .

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

3. Which of the following was not one of Kroc's failures?
(a) Jane Dobbins Pie Tree chain.
(b) Raymond's restaurant.
(c) The Hulaburger.
(d) Filet-O-Fish.

4. What, according to Kroc, is the common fallacy about money?
(a) Everything should be done for money.
(b) Money solves all problems.
(c) Money is important for happiness.
(d) Money creates problems.

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

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

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

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

9. 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) Couldn't find a replacement for Harry.
(c) Wanted to make changes in the organization.
(d) He had no other choice.

10. 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.

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

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

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

14. A common practice among California suppliers was:
(a) Poor service.
(b) Poor quality.
(c) Kickbacks in exchange for exclusive contracts.
(d) Refusal to negotiate.

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

Short Answer Questions

1. How did Kroc view prices and price increases?

2. Who did Kroc name as president?

3. As a result of the exclusive licensing agreement, McDonalds:

4. The McDonald's people referred to the Bristol group as:

5. What McDonald's management philosophy did Kroc apply to baseball?

(see the answer keys)

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