Which of the Following Is Most Likely to Be a Pyramid

question 36

Multiple Choice

Which of the following is most likely to be a pyramid scheme?

• A)A scheme involving a single product and many distributors
• B)A scheme involving a single product and a single distributor
• C)A scheme involving many products and many distributors
• D)A scheme involving many products and a single distributor

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to gauge the relative value of a stock.

Earnings Per Share

A profitability measure that indicates the portion of a company's profit allocated to each outstanding share of common stock, calculated as net income minus dividends on preferred stock divided by the average outstanding shares.

Earnings Before Taxes

A company's profit before taxation is deducted.

Industry Average

A statistical measure representing the typical performance within a particular industry, serving as a benchmark for evaluating individual companies.