Explain the difference between a real estate corporation and a REIT.

Choose the correct answer below.

A. A real estate corporation has a liability for the firm's debts, whereas a REIT does not.

B. There is no limit on the number of owners of a real estate corporation, but there is a limit on the number of owners of a REIT.

C. A real estate corporation must pay corporate income taxes, but REITs do not pay corporate tax. Instead, they must pass all of the income to the trust unit holders to whom the income is taxable.

D. When the ownership of a REIT changes, the firm is dissolved, whereas a real estate corporation does not dissolve when the ownership changes.