Bunny Babbett has just become an independent contractor selling the products of Tweethouse,a firm that makes elaborate (and expensive) birdhouses and bird feeders.Bunny was recruited to the firm by Sylvester Katt,who already sells the Tweethouse products as an independent contractor.Sylvester told Bunny that both he and she would receive a commission on every item she sold.He also pointed out that she could boost her income significantly by recruiting more people to sell the products,because she would receive a commission on her recruits' sales.The arrangement described by Sylvester suggests that Tweethouse is using:
A) multilevel marketing.
B) hierarchical distribution.
C) line and staff selling.
D) the Lorenzo methoD.In multilevel marketing,salespeople are expected to recruit more salespeople.Each salesperson operates as an independent contractor and receives a commission on the sales of his or her recruits.
Correct Answer:
Verified
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