REITs Must Be Passive Investments with External Advisors

question 23

True/False

REITs must be passive investments with external advisors.

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Definitions:

Interest Income

Income earned on various forms of investments like savings accounts, bonds, or loans, essentially any receivable that accumulates interest.

Debt Financing

Raising funds through borrowing, typically by issuing bonds or taking out loans, which entails repayment of principal and interest.

Equity Financing

The method of raising capital by selling company shares to investors. In return, shareholders receive ownership interests in the company.

Balance Sheet

A report detailing a business's assets, liabilities, and owners' equity at a given moment.