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:

Operating Activities Section

A component of the cash flow statement showing cash inflows and outflows related to the primary business activities.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.

Capital Asset

An asset of significant value owned by a business or individual for a long period, usually used in the production of goods or services.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments that are not considered to be cash equivalents.