When multilevel direct selling becomes a pyramid scheme:
A) the selling format is usually franchised
B) the use of the party plan becomes more commonplace
C) the salespeople are no longer independent agents
D) typical annual sales of products often double
E) little merchandise is sold to end users

Question

Quizplus · Accepted Answer

In a pyramid scheme, the focus is on recruiting new members rather than selling products to end users, resulting in little merchandise being sold.

When Multilevel Direct Selling Becomes a Pyramid Scheme