All of the following most likely indicate that a direct selling organization is legitimate EXCEPT ________.
A) having low entry barriers
B) clarifying the firm's code of ethics
C) paying for the recruitment of downline members
D) basing rewards mostly on product and service sales
E) accepting any unsold merchandise for a partial refund

Question

Quizplus · Accepted Answer

Paying for the recruitment of downline members is a characteristic of pyramid schemes, which are illegal and illegitimate direct selling practices. Legitimate direct selling organizations base rewards mostly on product and service sales and have low entry barriers, accept unsold merchandise for a partial refund, and clarify the firm's code of ethics.

All of the Following Most Likely Indicate That a Direct