For an REIT to Avoid Double Taxation, It Must Distribute

question 7

Multiple Choice

For an REIT to avoid double taxation, it must distribute what percentage of its income each year to the shareholders/investors?

• A) 85%
• B) 90%
• C) 95%
• D) 100%

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Definitions:

Price Affect

The psychological impact of price on a consumer's perception and purchasing behaviors, often influencing how a product is valued.

Demand

The consumer's desire and willingness to pay a price for a specific good or service.

Elastic Demand

A market condition where the quantity demanded of a product changes significantly in response to price changes.

Inelastic Demand

A market situation where the quantity demanded of a product does not change significantly when its price varies.