$39$

In Dr$.$ Jarvis' lectures covering Chapter $12,$ she discussed the differences between Multi$-$Level Marketing and Pyramid Schemes, and she gave Information on how to tell them apart. Which of the following is NOT true, based on this discussion?

$00$:$36$:$35$

Multiple Choice

In a Pyramid Scheme, the emphasis is primarily on having "distributors" $($participants$)$ recruit more participants who have to pay to buy into the program, rather than emphasizing sales of the product to end users

In the United States, Multi$-$Level Marketing is generally legal, but Pyramid Schemes are illegal. However, not all countries have laws against Pyramid Schemes, making those countries more vulnerable to fraudulent schemes

Pyramid Schemes are considered scams$/$fraud because they are mathematically unsustainable $-$ that means that the vast majority of participants in a Pyramid Scheme will lose money, with only a very few of the early participants at the top of the pyramid will make any money at all

In a Multi$-$Level Marketing firm, distributors can only sell product to end users $-$ if they are asked to recruit more distributors, it becomes a Pyramid Scheme and thus becomes illegal

A legitimate Multi$-$Level Marketing company will provide sales training and promotional support to its distributors to help them sell product to end users