A travel agency's financial statements are essential for which regulatory purpose?

The choice regarding the importance of a travel agency's financial statements for regulatory purposes is fundamentally tied to the requirement for compliance with financial security regulations. These regulations are in place to protect consumers by ensuring that travel agencies maintain certain financial standards. This includes having sufficient funds readily available to fulfill customer obligations, such as repaying clients in case of company insolvency or providing refunds in case of cancellations. By reviewing financial statements, regulatory bodies can ascertain whether an agency is financially stable enough to serve its customers and uphold their rights.

The other options, while relevant to a travel agency's operations, do not directly relate to regulatory compliance. Tracking employee performances and assessing customer satisfaction are essential for improving service and operational efficiency, but they do not address the legal obligations agencies have to maintain financial integrity. Meeting marketing targets is also important for business success, but it pertains to the agency's strategic business goals rather than regulatory compliance. Therefore, the role of financial statements is crucial in ensuring adherence to financial security regulations, ultimately protecting clients and the industry as a whole.