In the Terminology of Multilevel Marketing, Which of the Following

question 113

Multiple Choice

In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate?

• A) In multilevel marketing, upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution.
• B) In multilevel marketing, upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit.
• C) In multilevel marketing, upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling.
• D) In multilevel marketing, upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good.

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Definitions:

Legal Cartel Theory

A theory that proposes legal frameworks and regulations can sometimes create environments that encourage the formation of cartels, or cooperate between firms to control prices and output like a monopoly.

Public Interest Theory

The theory that regulation seeks to protect the public at large from inefficiencies and inequities that occur because of certain market practices.

Industrial Regulation

Laws and rules that govern how businesses can operate within certain industries, often to protect consumer interests and promote fair competition.

Social Regulation

Rules imposed by government aimed at improving health, safety, welfare, and well-being of citizens, often relating to environmental and consumer protection.