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Question 1
Gavin Winner wishes to start a small business at a street corner and plan to expand the business in chain stores in 5 years. He can either purchase an existing business or join a franchise. He is also considering whether he should work on his own capital. There are different choices for his start-up plan.
a. After a thorough discussion with Michael Jackson, Gavin decides to start the business with the capital contributed by both of them. Explain the advantages and disadvantage of this decision?
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