View a FREE sample

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

Multiple Choice Questions

1. What problem was unique to California suppliers?
(a) They formed suppliers cartels.
(b) They wouldn't negotiate with McDonalds.
(c) Some suppliers wouldn't deal with McDonalds.
(d) They weren't reliable.

2. One of the biggest problems in California was with:
(a) Real estate.
(b) Suppliers.
(c) Staffing.
(d) Space requirements.

3. Don Lubin described Ray Kroc to Buzzi Bavasi as:
(a) The man who owns seven million shares of McDonalds.
(b) A friend of the baseball commissioner.
(c) Head of a large sports syndicate.
(d) No description.

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

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

6. Kroc told sportswriters that he estimated it would take how long to rebuild the team?
(a) Three years.
(b) Five years.
(c) One year.
(d) No rebuilding was necessary.

7. What did it cost McDonalds to buyout the exclusive licensing agreement?
(a) $16.5 million.
(b) $5 million.
(c) $10 million.
(d) $8.5 million.

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

9. Why did McDonalds introduce the Filet-O-Fish sandwich?
(a) Kroc liked fish sandwiches.
(b) Part of normal menu expansion.
(c) Catholics could not eat meat on Fridays and McDonalds was losing too much business.
(d) Customers were demanding fish sandwiches.

10. Kroc felt that it was good policy to continue new store development in an economic downturn because:
(a) They had to follow their plan.
(b) Costs were lower.
(c) They would provide jobs.
(d) They wouldn't experience a financial loss.

11. Where did Kroc meet Joni Smith?
(a) St. Paul.
(b) New York.
(c) San Bernardino.
(d) Chicago.

12. Kroc decided to restructure the company for administrative purposes by:
(a) Dividing the country into regions.
(b) Opening new stores.
(c) Forming a new company.
(d) Hiring a new vice president.

13. Why were people wearing chef's hats given free admission to the park the day?
(a) McDonald's sponsored the game.
(b) An opposing team player publicly asked if Kroc thought he was talking to a group of short order cooks.
(c) So fans could show their support for McDonald's.
(d) As an honor to Ray Kroc.

14. What is Kroc's theory about size of stores and growth?
(a) All stores must be of uniform size.
(b) If you think small, you stay small.
(c) Begin with small stores and let them expand.
(d) He had no theory of the subject.

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

Short Answer Questions

1. Why couldn't McDonalds find a suitable partner for a merger?

2. What term does Kroc use to describe new product development?

3. When did McDonald's project they would payoff the loan?

4. When McDonalds went public, what was the initial offering price of the stock?

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

(see the answer keys)

This section contains 514 words (approx. 2 pages at 300 words per page) View a FREE sample