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

Multiple Choice Questions

1. Why does Howard insists that Starbucks remain company-owned and not franchised?
(a) To avoid partnerships.
(b) To maximize profits.
(c) To simplify advertising.
(d) To control quality.

2. What is the initial reaction to Starbucks in Chicago?
(a) It is ignored.
(b) It is slightly popular.
(c) It is not overwhelmingly popular.
(d) It is overwhelmingly popular.

3. What approach does Howard take when dealing with customer requests?
(a) He will listen to them and then explain to the customer why the company does not accept customer requests.
(b) He believes a company should do anything in its power to honor customer requests.
(c) He does not have the time to listen to them.
(d) He will listen to them, but admits that most of them cannot be fulfilled.

4. What does Howard observe about the espresso bars he visits in Italy?
(a) They close early on most nights.
(b) They are a comfortable gathering place.
(c) They are places with limited seating.
(d) They cater to the upper class only.

5. How much does Ron Margolis invest in Il Giornale?
(a) $100,000.
(b) $150,000.
(c) $250,000.
(d) $200,000.

6. How many days before his father's death does Howard arrive in New York?
(a) Four.
(b) Three.
(c) One.
(d) Two.

7. What profession does Ron Margolis, the first investor of Il Giornale, have?
(a) Pediatrican.
(b) Obstetrician.
(c) Chiropractor.
(d) Optometrist.

8. What type of business did Dave Olsen have before meeting Howard?
(a) A university coffeehouse.
(b) A university deli.
(c) A tea brewer manufacturing company.
(d) A coffeemaker manufacturing company.

9. What country is Perstorp, the parent company of Hammarplast, based in?
(a) Sweden.
(b) France.
(c) Norway.
(d) Ireland.

10. Who suggests the name, Il Giornale, for Howard's new coffee houses?
(a) Ron Margolis.
(b) Jerry Baldwin.
(c) Gordon Bowker.
(d) Arnie Prentice.

11. What was the first city in California to receive a Starbucks store in 1992?
(a) Los Angeles.
(b) San Diego.
(c) Sacramento.
(d) San Francisco.

12. When does Howard report the first profitable year for Starbucks?
(a) October 1990.
(b) November 1990.
(c) October 1991.
(d) November 1991.

13. What term does Howard use to replace "employees" after the introduction of the employee stock option?
(a) Team members.
(b) Co-owners.
(c) Partners.
(d) Investors.

14. What year does Howard realize that his idea of cafe style coffee houses is taking off?
(a) 1987.
(b) 1988.
(c) 1986.
(d) 1989.

15. What position does Howard hire Lawrence Maltz for?
(a) President of operations, finance, and human resources.
(b) Vice President in charge of only operations and finance.
(c) Vice President in charge of operations, finance, and human resources.
(d) President of only human resources.

Short Answer Questions

1. Which one of the following is not one of the things Howard proposes the company needs to expand successfully?

2. What part of the original Starbucks logo does Howard keep for the new company?

3. How long does Howard stay in Europe for his training with Hammarplast?

4. How is Howard's salary affected by his new job with Starbucks?

5. How many more stores does Howard open in Chicago to prove that it can catch on in that market?

(see the answer keys)

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