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

Multiple Choice Questions

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

2. 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.

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

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

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

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

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

8. 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) The park must be landscaped according to league requirements.
(c) A limit on the number of promotions.
(d) Only the official announcer can use the public address system.

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

10. Approximately how much did the Twelve Apostles make from the deal?
(a) $12 million.
(b) $9.75 million.
(c) $6 million.
(d) $5 million.

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

12. Under Fred Turner's leadership, McDonalds:
(a) Dropped the Filet-O-Fish.
(b) Raised prices.
(c) Opened stores in Canada.
(d) Changed their milk shake formula.

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

14. McDonalds lost business after the price increase. How long did it take for the customer counts to recover?
(a) One year.
(b) Three months.
(c) Seven months.
(d) They never achieved their pre-price increase level.

15. Which position did Ray Kroc hold in the corporation?
(a) President.
(b) Owner.
(c) Chief executive officer.
(d) Chairman.

Short Answer Questions

1. The new design of McDonald buildings included:

2. Why were people wearing chef's hats given free admission to the park the day?

3. After Ray married Jane, they sold the Woodland Hills house and:

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

5. Which was not an area of the McDonald's business that Kroc remained active in?

(see the answer keys)

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