Question

A jewelry direct sales company pays its consultants based on recruiting new members. Question 1 options: The company is running a pyramid scheme, which is illegal. The company is running a pyramid scheme, which is legal. The company has implemented a legal and ethical plan for growth. The company uses this method of compensation to reduce the fee for the product sample kit.

Answer 1

Using commissions as a part of compensation is widely accepted in most industries (with some exceptions like college recruiting).

With the jewelry store paying the consultant based on new clients, this is a completely legal way to encourage growth.

Answer 2

The company is running a pyramid scheme which is illegal

Step-by-step explanation:

I searched it up on google