Why Are Pyramid Schemes Illegal

question 9

Multiple Choice

Why are pyramid schemes illegal?

• A) Firms engage in the online sale of products and services.
• B) Firms receive customer payments without selling products.
• C) Individuals are actively recruited to fill direct sales positions.
• D) Salespeople are overly persistent when trying to gain big sales.
• E) Sales recruits lack the business knowledge and skills to be ethical.

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Definitions:

Specific

Clearly defined and precise, leaving little to no room for ambiguity or variability.

Strategic Planning

The process of defining a direction for an organization by setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.

Day-To-Day Operations

Activities and tasks that a business or organization performs regularly to ensure its continued functioning and success.

SWOT Exercise

A strategic planning tool used to identify and analyze the Strengths, Weaknesses, Opportunities, and Threats related to a project, organization, or business.