Exercise
Answer the following questions.
1. What does REIT stand for?
A. Real estate investment transfer
B. Real estate investment tax
C. Revenue enhancing investment trade
D. Real estate investment trust
2. Does a REIT pass through losses to its investors?
A. Yes, just like a DPP in the real estate business
B. No, unlike a DPP or a RELP
C. Yes, like a DPP but unlike a RELP
D. No, unlike a DPP but like a RELP
3. What does beneficial interest mean?
A. The owner of the shares owns an actual share of the real estate the REIT owns.
B. The owner of the shares does not own any of the REIT’s real estate but is entitled to benefits from owning shares.
C. The shareholder does not really own the shares but benefits from the REIT’s business success.
D. The REIT takes a beneficial interest in any real estate the share