Which One of the Following Is Not Required of a REIT

question 123

Multiple Choice

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

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

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Definitions:

Financial Statements

Compiled records that convey the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Foreign Currency Approach

A method used in financial analysis and reporting that involves converting transactions or balances in foreign currencies into the functional currency.

Capital Budgeting

The process of planning and managing a company's long-term investments in major projects or assets to maximize profitability.

Home Currency Approach

A method of evaluating foreign investments or earnings by converting them into the investor’s domestic currency.