In Order to Be Treated as a "Flow-Through Entity" for Tax

Multiple Choice

In order to be treated as a "flow-through entity" for tax purposes, a mutual fund must do which of the following?
I. It must hold almost all of its assets in stocks, bonds, and other securities.
II. It must follow investing rules set by the Canada Revenue Agency.
III. It must pass through all realized investment income to its shareholders.

A) I and II only.
B) I and III only.
C) II and III only.
D) III and IV only.
E) I, II, and III.