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H manufactures and sellshealthy dietary supplements. The companyrecruits individuals as part-timeagents to sellitsproductstofriends and colleagues. These agents are required to buy H's products and to resell them at asmall mark-up.
For a fee, H will provideagents withtrainingin persuasive selling techniques. Agents who pass exams at the conclusion of this training can become distributors. Distributors buy bulk quantities of H's products at a discount and can recruit their own sales agents. Those agents can also take training and can recruit agents of their own.
At what stage does H stop being a legitimate business and become apyramidsellingfraud?
Suggested Answer: A, B, D
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41 comments · newest first
SH
Shelia
11 months ago
Just to clarify, they do offer training for a fee, right?
AI
Aide
11 months ago
Totally agree, C is the tipping point for sure!
PR
Precious
12 months ago
Wait, are they really promising secret selling techniques? Sounds sketchy!
SA
Sage
12 months ago
I think it’s when they reward recruiting over actual sales.
FA
Fanny
1 year ago
Agents have to buy products upfront, that's a red flag.
TI
Timothy
1 year ago
I vaguely recall that training programs can be a part of legitimate businesses, so I’m not sure if D is the best choice. It feels like it could go either way.
AL
Alaine
1 year ago
I think we covered something about how returns on investment should be based on sales, not just recruiting. So, option C seems to make sense to me.
JO
Johna
1 year ago
I'm not entirely sure, but I feel like if agents are pressured to buy products upfront, that could be a red flag too. Maybe option A?
RO
Rosalia
1 year ago
I remember discussing how the focus on recruitment over actual product sales can indicate a pyramid scheme, so I think option C might be the right answer.
KE
Kenny
1 year ago
Good point. I'll make sure to review those details before submitting my answers.
EL
Elza
1 year ago
This looks like a straightforward TOGAF 9 question. I'm pretty confident I can identify the correct answer based on my understanding of the framework.
AN
Anissa
1 year ago
This seems straightforward enough. Gout is a hereditary metabolic disorder that causes joint inflammation due to uric acid crystals. I'm going to go with C on this one.
KA
Kanisha
1 year ago
I'm a bit unsure about this one. I'll need to review my notes on E-MapReduce to make sure I understand the software versioning options.
RI
Ria
1 year ago
I vaguely recall something about 1GB being a common spec with some models. That's what I'm leaning towards.
RO
Rosio
1 year ago
I think the App Security dashboard would be the best option here. It should provide information on high-risk traffic to internal websites.
AN
Antonio
1 year ago
Okay, I think I've got a handle on this. The key is to identify the statement that doesn't accurately describe the PITP protocol.
SO
Solange
1 year ago
Ah, the old 'recruit your way to riches' scheme. I wonder if they offer a frequent flyer program for all those recruiters climbing the pyramid. C is the way to go, my friends.
EM
Emilio
1 year ago
If it looks like a pyramid, smells like a pyramid, and promises you the world for just a small investment... it's probably a pyramid scheme. C marks the spot, folks!
RU
Rupert
1 year ago
D) When its training programmes promise to unlock the secret of selling its product.
AV
Avery
1 year ago
C) When it offers its agents more reward for recruiting other agents than for selling its product.
RO
Rocco
1 year ago
B) When it offers returns on its agents' investments that seem remarkable.
CL
Claribel
1 year ago
A) When it asks its agents to buy product and marketing material up front.
NI
Nickie
1 year ago
I'm gonna have to go with C on this one. Anything that prioritizes recruitment over actual product sales is a big red flag in my book. Seems like a classic pyramid scheme to me.
RE
Rebeca
1 year ago
Ah, the age-old pyramid scheme dilemma. I say, if it quacks like a duck and walks like a duck, it's probably a pyramid scheme. C all the way, my friends!
AL
Alida
1 year ago
True, but C is where the real danger lies in my opinion.
KA
Kathrine
1 year ago
But what about A? Asking agents to buy product up front seems fishy too.
CA
Catalina
1 year ago
I agree, C does seem like a red flag.
ON
Oneida
1 year ago
Hmm, this is a tricky one. I'm not sure if I agree with C though. What if the training programs really do teach effective selling techniques? Maybe D is the right answer here.
DA
Dannette
1 year ago
C) When it offers its agents more reward for recruiting other agents than for selling its product.
LA
Lashawna
1 year ago
B) When it offers returns on its agents' investments that seem remarkable.
CA
Carissa
1 year ago
A) When it asks its agents to buy product and marketing material up front.
BE
Becky
1 year ago
This question seems pretty straightforward. I think the correct answer is C - when the rewards for recruiting agents outweigh the rewards for actually selling the product, that's a clear sign of a pyramid scheme.
BR
Britt
1 year ago
C) When it offers its agents more reward for recruiting other agents than for selling its product.
BA
Bambi
1 year ago
B) Whenit offers returns on its agents' investments that seem remarkable.
RO
Rory
1 year ago
A) When it asks its agents to buy product and marketing material up front.
DA
Dalene
2 years ago
But what about when H asks its agents to buy product and marketing material up front? Doesn't that also seem suspicious?
JU
Julianna
2 years ago
I agree with you, Vivan. When the focus shifts to recruiting rather than selling the actual product, it's a red flag.
VI
Vivan
2 years ago
I think H becomes a pyramid selling fraud when it offers more reward for recruiting agents than for selling the product.
JE
Jennifer
2 years ago
I'm not sure. Maybe it's when H asks its agents to buy product and marketing material up front. That seems shady to me.
TO
Tori
2 years ago
I agree with Suzan. When the focus shifts to recruiting rather than selling the product, it's a red flag for a pyramid scheme.
SU
Suzan
2 years ago
I think H becomes a pyramid selling fraud when it offers more reward for recruiting agents than for selling the product.