Which One of the Following Is Not Required of a REIT

question 106

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 70 percent of the total assets in real estatE.

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Definitions:

Accounts Payable

Liabilities of a business that represent money owed to creditors for goods and services purchased on credit.

Accounts Payable

the amount a company owes to suppliers or creditors for goods and services bought on credit.

Inventory Decrease

A reduction in the quantity or value of inventory held by a business over a specific period.

Cash Payments

Transactions involving the transfer of cash from one entity to another, usually as exchanges for goods, services, or to settle debts.