Why Are Airports Such a Profitable Place to Have a Retail

question 13

Multiple Choice

Why are airports such a profitable place to have a retail business?

• A) Airport leases are lower
• B) International tourists and local residents like to shop in Canadian airports
• C) Waiting time allows people to spend money in airport shops
• D) Sales per square foot are similar to shopping malls
• E) Wages are lower than in cities

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Definitions:

Cash Management System

A framework used by companies and individuals to manage, monitor, and control their cash flow and liquidity efficiently.

Disbursement Float

The time delay between when a check is written and the funds are actually deducted from the payer's account.

Collections Float

The time gap between when a check is deposited in a bank and when the funds become available, affecting the cash flow of the business.

Credit Department

The division within a company or financial institution that is responsible for managing customer credit and collecting payments.