John and Paul recently formed a partnership for the purpose of creating a new, discount airline. They currently require some financial support to get the business started and are exploring potential sources. Before they undertake their first flight, they want to ensure that their liability will be limited so they may need to change the form of their business organization.

The new discount airline, Pegasus Air, has unveiled a plan to fly from Toronto to the Bahamas for $99 one way and travel to other Caribbean Islands for $119 while maintaining a high level of service to its passengers. The carrier hopes to start operating by next spring out of Toronto's Lester B. Pearson airport. Services will operate year-round, with departures on Tuesdays and Thursdays. Although the business model has had a turbulent history in North America with the demise of airlines like JetsGo (CBC News), and Canada 3000, discount airlines like Ryan Air, Aer Lingus, EasyJet and others have had success offering short-haul flights between destinations. In addition; WestJet has announced plans to offer more and cheaper flights in the near future. (CBC News)

1question: List and describe three natural barriers to trade among countries, and how these could affect Pegasus.

2question: List and describe FIVE (5) of the six environments of business (i.e. "PESTEL") and how Pegasus Air could be affected by each.

3question:

List and describe four stakeholders of Pegasus, and what Pegasus could or should do for each.