The "installed base" relates to direct network externalities in what way?
a. The base technology employed determines how broad the market will be.
b. The installed base and direct network externalities increase in direct relationship.
c. The installed base and direct network externalities increase in an inverse relationship.
d. The installed base refers to how many additional products will spin off, adding value to the direct network base.
e. No relationship exists between installed base and direct network externalities.
B
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Parents lend $2,000,000 to their child to start a business. The loan is interest-free and is payable on demand. The imputed interest is subject to
A. The gift tax only in the year the parents lend the money. B. The generation-skipping transfer tax, but not the gift tax. C. The gift tax each year the loan is outstanding. D. An excise tax.
Bob owns a life estate in a ranch in Idaho. This means that:
A) Bob, or his immediate family, can live on the ranch so long as at least one of them is sill living. B) Bob must live on the ranch for the rest of his life. C) He can live on the ranch as long as he lives, or he can sell this right to someone else. D) He can live on the ranch as long as he lives, but if he moves off the ranch, he loses it.