Leakage Occurs When ____________________

question 25

Multiple Choice

Leakage occurs when ____________________.

• A) workers from outside the community must be brought in to help serve the influx of tourists
• B) Canadian tourism dollars are spent in foreign countries rather than in Canada
• C) foreign tourists choose to spend their tourism dollars in the United States instead of Canada
• D) tourists reduce their overall spending

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Definitions:

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of taxes and interest.

Selling Price

The amount of money that a buyer pays to purchase a product or service from a seller.

Cost Structure

The composition of a company's costs, including fixed and variable costs.

Equipment Depreciation

The allocation of the cost of physical assets over their useful lives, recognizing the reduction in value due to wear and tear, obsolescence, or age.