Which One of the Following Is Not Required of a REIT

question 132

Multiple Choice

Which one of the following is not required of a REIT by federal law?

• A) Distributing 90 percent or more of the taxable annual earnings to shareholders
• B) Hiring independent real estate professionals to perform certain management activities
• C) Having at least 100 shareholders with no more than half of all shares owned by 5 or fewer people
• D) Making direct investments only in apartment houses, shopping malls, and other commercial property
• E) Investing at least 75 percent of the total assets in real estate

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Definitions:

Prospect

A potential customer or client who has been identified as fitting a business’s target market criteria but has not yet been engaged or made a purchase.

Qualified Business

A company or individual that meets certain criteria or standards, making them a worthwhile or potential target for sales or marketing efforts.

Networking

The process of engaging with others to share information and build professional or social networks.

Selling Process

A series of steps followed by a salesperson to facilitate the purchase of a product or service by a customer.