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

Multiple Choice Questions

1. Kroc felt that it was good policy to continue new store development in an economic downturn because:
(a) They wouldn't experience a financial loss.
(b) Costs were lower.
(c) They would provide jobs.
(d) They had to follow their plan.

2. How many states were in the west coast region?
(a) Five.
(b) Ten.
(c) Fourteen.
(d) Six.

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

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

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

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

7. Where was Hamburger University located?
(a) Chicago, Illinois.
(b) Arlington Heights, Illinois.
(c) Des Plaines, Illinois.
(d) Elk Grove Village, Illinois.

8. What baseball team did Ray Kroc purchase?
(a) Chicago White Sox.
(b) San Diego Padres.
(c) Chicago Cubs.
(d) New York Yankees.

9. When McDonalds went public, what was the initial offering price of the stock?
(a) $18.
(b) $35.
(c) $25.
(d) $22.50.

10. How did McDonald's solve its identity problem and improve sales in Calfornia?
(a) Improved quality.
(b) Lowered prices.
(c) Television advertising campaign.
(d) Hired new managers.

11. Why was Kroc as interested in California?
(a) He wanted to get away from Chicago.
(b) It was the site of the original McDonald brothers stores.
(c) The state had a potential equal to almost the rest of the US market.
(d) The McDonald brothers lived there.

12. The problems McDonald's eliminated by switching to frozen french fried included all but:
(a) Using square boxes.
(b) Peeling potatoes.
(c) Lifting nine hundred pound bags of potatoes.
(d) Blanching the potatoes.

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

14. The new design of McDonald buildings included:
(a) No golden arches.
(b) Seating room.
(c) Table services.
(d) Parking lot services.

15. 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) Mismanagement.
(d) Bad publicity.

Short Answer Questions

1. How many hamburgers had McDonalds sold by July 1966?

2. How did Ray Kroc meet Jane Dobbins Green?

3. What term does Kroc use to describe new product development?

4. McDonald's faced opposition from some of their operators in the form of:

5. Under Fred Turner's leadership, McDonalds:

(see the answer keys)

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