Question #22
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 10
Status: Unattempted
Correct Answer: B
Question
Compared with REITs, real estate operating companies (REOCs) are most likely to feature higher:
Answer Choices:
A. yields
B. levels of income tax exemption
C. operating flexibility
Explanation
REOCs have greater operating flexibility to invest in a wide range of real estate than do
REITs. REITs offer higher yields compared to REOCs. REITs offer income tax exemption
while REOCs generally do not.