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

Multiple Choice Questions

1. How does the interior design department at Starbucks select the decor for stores?
(a) Based on suggestions from customers.
(b) Based on designs that are relevant to the local areas.
(c) Based on designs that are relevant to the current trends.
(d) Based on suggestions from employees.

2. Which one of the following cities is not included in the locations for Starbucks stores that opened in 1994?
(a) Baltimore.
(b) New York City.
(c) Dallas.
(d) Boston.

3. What does Howard encourage his team to do after the disappointing holiday season?
(a) Stop trying to anticipate trends and start developing new products.
(b) Anticipate trends and stop developing new products.
(c) Stop trying to anticipate trends and stop developing new products.
(d) Anticipate trends and develop new products.

4. What person is quoted at the very beginning of Chapter 21?
(a) Stephen Covey.
(b) Norman Lear.
(c) Anthony Robbins.
(d) Donald Trump.

5. When the decision to take Starbucks public is announced, what does Howard feel most investment banks do not understand?
(a) The company's intangible value.
(b) The way the company makes money.
(c) The reasons why there is no franchising available.
(d) The value of the company's employees.

6. What year does Howard open the first Starbucks store in Japan?
(a) 1996.
(b) 1997.
(c) 1995.
(d) 1994.

7. Based on United Airlines' estimates, how many of their customers request coffee during the flights?
(a) Between thirty five and fifty percent.
(b) Between thirty and forty percent.
(c) Between twenty five and forty percent.
(d) Between twenty and thirty percent.

8. What city in Japan hosts the country's first Starbucks store?
(a) Osaka.
(b) Kyoto.
(c) Tokyo.
(d) Nagasaki.

9. What is Howard's initial response to the idea of serving cold drinks in the stores?
(a) He denies the request.
(b) He approves the request with no changes.
(c) He is unsure about how to react.
(d) He approves the request, with several stipulations.

10. What year does Howard first meet with Pepsi to discuss the mass distribution of Starbucks products?
(a) 1991.
(b) 1992.
(c) 1994.
(d) 1993.

11. What is the profession of Don Valencia, the person that invents a coffee extract?
(a) Chemist.
(b) Chef.
(c) Biologist.
(d) Mathematician.

12. What country are the detractors that accuse Starbucks of paying too little for their coffee from?
(a) Guatemala.
(b) Brazil.
(c) Colombia.
(d) Cuba.

13. What year did Howard open Starbucks stores in Philadelphia, Austin, and Pittsburgh?
(a) 1993.
(b) 1995.
(c) 1994.
(d) 1996.

14. What is preventing Starbucks from switching to a polystyrene cup?
(a) Recycling.
(b) Cost.
(c) Availability.
(d) Convenience.

15. What happens when two local managers first create a blended icy drink?
(a) The reaction is positive, but the drink has an uneven consistency.
(b) The reaction is positive and the drink has a great consistency.
(c) The reaction is negative and the drink has an uneven consistency.
(d) The reaction is negative, but the drink has a great consistency.

Short Answer Questions

1. How is Starbucks listed on the NASDAQ stock exchange in New York City?

2. What keeps shoppers away during the worst holiday season in the company's history?

3. Which city has labor activists that attempt to defame Starbucks?

4. What date does Starbucks finally go public?

5. As the crisis and other companies lower their prices, how much does Starbucks increase its prices to compensate for the stock they have?

(see the answer keys)

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