GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as ____
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pyramid schemes
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pressure-cooking tactics
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marketing rackets
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deceptive advertising gimmicks
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Explanation:
Detailed explanation-1: -Examples of Pyramid Schemes: Burn Lounge: An online music store that lured persons who paid for the right to sell music, while earning awards for recruiting other individuals into the business. The bonuses were not in any way tied to sales of merchandise. The FTC won a $17 million judgment.
Detailed explanation-2: -Pyramid schemes-also referred to as franchise fraud or chain referral schemes-are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product.
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