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

Multiple Choice Questions

1. 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.

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

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

4. Who did Kroc name as president?
(a) June Martino.
(b) Fred Turner.
(c) Dick Boylan.
(d) Luigi Salveneschi.

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

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

7. Kroc, with McDonald offices in Chicago and Los Angeles,:
(a) Stayed in Chicago.
(b) Spent two weeks of each month in each city.
(c) Retired.
(d) Stayed in Los Angeles.

8. 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.

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

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

11. How did Kroc view prices and price increases?
(a) Price increases should be tied to the cost of living.
(b) Every penny mattered to the consumer.
(c) The fifteen cent hamburger price had to be maintained.
(d) McDonald's should charge the highest price the market would bear.

12. When did McDonald's actually pay off the loan?
(a) 1991.
(b) 1983.
(c) 1969.
(d) 1972.

13. Filet-O-Fish became a regular part of the menu in:
(a) 1962.
(b) 1959.
(c) 1965.
(d) 1963.

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

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

Short Answer Questions

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

2. What problems did McDonalds face in the Washington DC area that Kroc resolved?

3. Don Lubin described Ray Kroc to Buzzi Bavasi as:

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

5. In granting franchises, McDonald gives preference to:

(see the answer keys)

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