Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 2

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Prepare for the CAPS Exam with a comprehensive study of Module 2. Utilize our practice resources filled with flashcards, multiple choice questions, and thorough explanations to ensure your success!

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Which of the following is not considered a type of ownership in investment?

Sole proprietorship
LLC
Retail business
Reit

The correct answer is: Retail business

The selection of "C. Retail business" as the answer is accurate because a retail business itself is not a type of ownership structure; rather, it refers to an operational model or industry. Ownership types define how a business is legally structured in terms of liability, taxation, and management. On the other hand, a sole proprietorship is a straightforward ownership model where a single individual owns and operates the business, bearing all responsibilities. An LLC, or Limited Liability Company, combines features of both corporations and sole proprietorships, providing limited liability while allowing for pass-through taxation. A REIT, or Real Estate Investment Trust, is a company that owns, operates, or finances income-producing real estate and must adhere to specific regulatory requirements, which denote a defined ownership structure for real estate investment purposes. Therefore, the other options represent distinct ownership types, while a retail business categorizes a type of commercial activity rather than ownership itself.