REE 3043 EXAM 2 MULTIPLE CHOICE QUESTIONS
AND ANSWERS 2026
Four Classes of Real Property - Answers - 1) Personal Residence
2) Dealer Property
3) For use in trade/business
4) Investment
Three types of income subject to taxation - Answers - 1) Active Income
2) Portfolio Income
3) Passive Activity Income
For purposes of federal income tax, an apartment complex purchased and held by an
investor renting space to tenants is classified as: - Answers - Business Property
The dividends distributed to investors in a real estate investment trust are classified as:
- Answers - Portfolio Income
The total tax paid by a taxpayer, divided by their taxable income is termed: - Answers -
the average tax rate
For individuals and partnerships, tax losses from passive activities can be used to offset
positive taxable income from _____________. - Answers - other passive activities
Real estate managers that oversee the day-to-day operations of real property,such a
rent, collection, physical maintenance, and tenant relations are: - Answers - Property
Managers
Real Estate managers that advise owners of investment portfolios about the kinds of
investments needed to fulfill the overall objectives for risk and return are: - Answers -
Portfolio Managers
The promotion and marketing of space to neighboring users is termed: - Answers -
Concentric Marketing
The development of a recognizable logo which ties all advertising and promotional
material together is an example of what the text calls: - Answers - Thematic Image
Marketing
According to the text, some experts belief that __________ of those who sign leases do
so because they received a favorable impression when viewing the property. - Answers
- 50 percent
AND ANSWERS 2026
Four Classes of Real Property - Answers - 1) Personal Residence
2) Dealer Property
3) For use in trade/business
4) Investment
Three types of income subject to taxation - Answers - 1) Active Income
2) Portfolio Income
3) Passive Activity Income
For purposes of federal income tax, an apartment complex purchased and held by an
investor renting space to tenants is classified as: - Answers - Business Property
The dividends distributed to investors in a real estate investment trust are classified as:
- Answers - Portfolio Income
The total tax paid by a taxpayer, divided by their taxable income is termed: - Answers -
the average tax rate
For individuals and partnerships, tax losses from passive activities can be used to offset
positive taxable income from _____________. - Answers - other passive activities
Real estate managers that oversee the day-to-day operations of real property,such a
rent, collection, physical maintenance, and tenant relations are: - Answers - Property
Managers
Real Estate managers that advise owners of investment portfolios about the kinds of
investments needed to fulfill the overall objectives for risk and return are: - Answers -
Portfolio Managers
The promotion and marketing of space to neighboring users is termed: - Answers -
Concentric Marketing
The development of a recognizable logo which ties all advertising and promotional
material together is an example of what the text calls: - Answers - Thematic Image
Marketing
According to the text, some experts belief that __________ of those who sign leases do
so because they received a favorable impression when viewing the property. - Answers
- 50 percent
