Which of the following is a variation of fraudulent MLMs, in which an organization sells illusionary products and profits, instead of real products?
A) Ponzi scheme
B) Foreign advance scheme
C) Identity theft scheme
D) Shoulder surfing scheme

Question

Quizplus · Accepted Answer

A Ponzi scheme is a type of fraudulent MLM in which an organization promises high returns to investors but instead pays those returns out of the capital provided by newer investors. In this variation, the organization does not even have real products to sell, but rather offers illusionary products and profits to entice investors.

Which of the Following Is a Variation of Fraudulent MLMs