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1. What are the important of small business to the Malaysian economy? Providing technological innovation. Providing employment.

2. What are the advantages and disadvantages of a small business? Advantages. Personal relationship with customers and employees. Ability to adapt to charge. Simplified record keeping. Independence. Disadvantages. Risk fo failure. Limited potential. Limited ability to raise capital. 3. What are the advantages of franchising to the Franchisor and Franchisee. Franchisor Fast and well controlled distribution of its products. No need to construct and operate its own outlets. Motivated work force of franchisees.

Franchisee Guaranteed customers. Cost savings when purchasing in cooperations which other franchisees. Franchisor available for advice and guidance.

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