Understanding Hospitality Investments and Taxes

What is a common strategy for capital investment in the hospitality industry?

• Investing in technology

• Buying new furniture

• Expanding the parking lot

• Hiring more staff

Which of the following is a leasing option commonly used in the hospitality industry?

• Short-term lease

• Long-term lease

• Equipment lease

• Vehicle lease

What is a tax implication for hotels in Canada?

• Hotels pay no taxes

• Hotels have a special tax rate

• Hotels can deduct certain expenses

• Hotels pay higher taxes than other businesses

Which of the following is a method of financing hospitality projects?

• Personal savings

• Bank loans

• Crowdfunding

• All of the above

What is depreciation in hospitality assets?

• Increase in asset value over time

• Decrease in asset value over time

• Asset maintenance cost

• Asset purchase cost

Which of the following is a tax incentive for tourism in Canada?

• Tax increase for tourists

• Tax credits for hotel renovations

• Higher taxes for new hotels

• No tax incentives

What is a benefit of capital investment in the hospitality industry?

• Increased operational costs

• Improved guest experience

• Reduced staff

• Decreased property value

Which leasing option allows hotels to use equipment without owning it?

• Purchase lease

• Operating lease

• Capital lease

• Ownership lease

How can hotels benefit from tax deductions?

• By increasing room rates

• By reducing staff salaries

• By investing in energy-efficient systems

• By cutting down on amenities

What is a common source of financing for new hotel projects?

• Government grants

• Personal loans

• Venture capital

• Family donations