CIMAPRA19-P03-1 Exam - Topic 6 Question 29 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 29
Topic #: 6

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?

AWhen it asks its agents to buy product and marketing material up front.

BWhenit offers returns on its agents' investments that seem remarkable.

CWhen it offers its agents more reward for recruiting other agents than for selling its product.

DWhen its training programmes promise to unlock the secret of selling its product.

Show Suggested Answer

Suggested Answer: A, B, D

by Hubert at Jul 05, 2023, 07:54 AM

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Shelia

6 months ago

Just to clarify, they do offer training for a fee, right?

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Aide

6 months ago

Totally agree, C is the tipping point for sure!

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Precious

7 months ago

Wait, are they really promising secret selling techniques? Sounds sketchy!

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Sage

7 months ago

I think it’s when they reward recruiting over actual sales.

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Fanny

7 months ago

Agents have to buy products upfront, that's a red flag.

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Timothy

7 months 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.

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Alaine

8 months 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.

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Johna

8 months 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?

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Rosalia

8 months 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.

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Kenny

8 months ago

Good point. I'll make sure to review those details before submitting my answers.

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Elza

8 months 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.

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Anissa

8 months 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.

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Kanisha

8 months 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.

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Ria

8 months ago

I vaguely recall something about 1GB being a common spec with some models. That's what I'm leaning towards.

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Rosio

8 months ago

I think the App Security dashboard would be the best option here. It should provide information on high-risk traffic to internal websites.

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Antonio

8 months 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.

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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.

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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!

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Rupert

11 months ago

D) When its training programmes promise to unlock the secret of selling its product.

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Avery

11 months ago

C) When it offers its agents more reward for recruiting other agents than for selling its product.

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Rocco

11 months ago

B) When it offers returns on its agents' investments that seem remarkable.

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Claribel

11 months ago

A) When it asks its agents to buy product and marketing material up front.

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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.

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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!

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Alida

11 months ago

True, but C is where the real danger lies in my opinion.

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Kathrine

11 months ago

But what about A? Asking agents to buy product up front seems fishy too.

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Catalina

11 months ago

I agree, C does seem like a red flag.

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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.

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Dannette

11 months ago

C) When it offers its agents more reward for recruiting other agents than for selling its product.

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Lashawna

12 months ago

B) When it offers returns on its agents' investments that seem remarkable.

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Carissa

12 months ago

A) When it asks its agents to buy product and marketing material up front.

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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.

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