Your friend Prisha will be graduating from Senecas Flight Services program next year and has always dreamed of being involved in operating an airline. Shes even named her airline Prish-Air!

Prisha has not taken any business courses, but she knows that you have. So, Prisha shares her idea with you because she has some questions for you and wants your advice.

Prisha says that she has studied and investigated airline routes and opportunities. She thinks that a small specialty airline can be more competitive than existing larger airlines. Her plan is to provide flights a few times per week from Montreal to Jamaica and perhaps other Caribbean Islands during the winter months, and from Montreal to Iceland and Ireland during summer months. As an example of an airline success using a similar strategy, she tells you that WestJet started out with only a few flights and grew from there. She is very excited!

Prisha asks you about the following:

1. Prisha says shes heard there are 3 forms of business ownership. Shes asked you which form you think is best for her to start her airline with, and to explain why you believe this to be the best form of ownership for her to start her airline with. Be sure to include some advantages and disadvantages in your explanation.
2. Prisha says she expecting to be very successful with her airline and wants to know if she should change her form of business ownership when the airline has become very successful, and why or why not. State whether you think Prisha would need to change her form of business ownership when the airline becomes very successful and explain why you believe this.
3. Prisha said she is thinking ahead and is very concerned about long-term financing. She has asked you to explain the differences between debt financing and equity financing. (5 marks) She also wants to know whether you recommend debt financing or equity financing, and why you make this recommendation.