MediaTeq required its employees to send photocopies of a letter to 100 people.The letter contained a list of 10 names and addresses.People were required to send $1 to the first 10 names on the list to join the MediaTeq club.After that, they had to place their names and addresses at the bottom of the list, strike off the first 10 names, and send it to 100 other people.This is an example of:
A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question

Quizplus · Accepted Answer

This is an example of pyramid selling, a form of multi-level marketing where participants earn money by recruiting new members into the program and receive a commission on the sales made by those members. The requirement to send the letter to 100 people and add their names at the bottom of the list is a classic pyramid scheme tactic aimed at rapidly expanding the network and attracting new members to join.

MediaTeq Required Its Employees to Send Photocopies of a Letter