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

Multiple Choice Questions

1. What did the McDonald brothers have an architect working on?
(a) A house.
(b) A new warehouse.
(c) The design for a new drive-in building.
(d) A remodeled restaurant.

2. How did McDonalds manage to borrow $1.5 million from three insurance companies?
(a) By improving their balance sheet.
(b) By give them managing control.
(c) By signing guarantees.
(d) In exchange for 22.5% of their stock.

3. What function did Clem Bohr fulfill?
(a) Develop a purchasing system.
(b) Develop a financing program.
(c) Finding ideal locations for McDonald's restaurants in different parts of the country.
(d) Train new employeers.

4. Kroc's view on taking risks is that risk:
(a) Is part of any reasonable business challenge.
(b) Should be taken cautiously.
(c) He has no view.
(d) Is to be avoided.

5. Why did Ray return to Chicago?
(a) His grandmother was ill.
(b) Better job prospects.
(c) He didn't like New York.
(d) To marry Ethel.

6. Kroc's simple philosophy is that:
(a) People are trapped by circumstances.
(b) Life is predetermined.
(c) He has no simple philosophy.
(d) People are responsible for their own problems and happiness.

7. Kroc hired Harry Sonnenburn to handle:
(a) Sales.
(b) Restaurant development.
(c) Staffing.
(d) Financing.

8. What was one of the most successful elements of the McDonald's brothers operation?
(a) French fries.
(b) Shakes.
(c) Hamburgers.
(d) Soft drinks.

9. Why couldn't the Des Plaines franchise be an exact duplicate of the San Bernadino original?
(a) Because of union requirements.
(b) There was not enough space.
(c) Because of differences in climate.
(d) It was too costly.

10. Kroc found the 1927-37 period exciting because of:
(a) The growth of the paper cup industry.
(b) The building bang.
(c) The growth of his family.
(d) The stock market boom.

11. Where was the first McOpCo Store?
(a) Peoria, Illinois.
(b) Torrence, California.
(c) San Diego, California.
(d) Columbus, Ohio.

12. After the real estate job ended, Ray supported his family by:
(a) Selling encyclopedias.
(b) Selling vacuum cleaners.
(c) Playing piano in a speakeasy.
(d) Working in a restaurant..

13. Why did the brothers refuse Kroc's original offer?
(a) They didn't have the money.
(b) They didn't trust him.
(c) They wanted more money.
(d) They were happy with their situation and wanted to enjoy life.

14. The first business Ray opened was:
(a) A music store.
(b) A restaurant.
(c) A delivery service.
(d) A talent agency.

15. McDonalds raised the money to pay the liens by:
(a) Borrowing through a bond issue.
(b) Borrowing from suppliers.
(c) Borrowing from a bank.
(d) Welling stock.

Short Answer Questions

1. Dick Boylan and Bob Ryan secured jobs with McDonalds because of their:

2. Ray and Ethel married in:

3. Kroc's original contact with the McDonald brothers provided that each franchise unit:

4. How did Kroc resolve the problem of the french fries?

5. Who did Kroc recommend to open restaurants for them?

(see the answer keys)

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