Final answer:
Multilevel marketing companies are legal business structures that increase their distribution process by recruiting additional company sales reps and paying commissions based on sales made by the reps. Option b. is the correct answer.
Step-by-step explanation:
Multilevel marketing companies, also known as MLM companies or network marketing companies, are legal business structures that increase their distribution process by recruiting additional company sales reps. These reps are responsible for selling the company's products or services and are incentivized through commissions. However, it is important to note that legitimate MLM companies pay commissions based on sales made by the reps and not just for signing up new recruits.
Contrary to the belief that MLM companies require little time and effort to be successful, achieving success in this business model still requires hard work, dedication, and effective sales and marketing strategies. While there may be success stories of individuals who have achieved financial success through MLM companies, it is important to research and understand the specific company's track record, products, compensation plan, and support system before getting involved.