Which of the following is NOT true of multilevel marketing? A) Multil

QUESTION

Which of the following is NOT true of multilevel marketing?

A) Multilevel marketing never results in significant compensation.
B) Avon, Amway, and Mary Kay Cosmetics are all multilevel marketing companies.
C) Multilevel marketers are often advised to sell to their families and friends.
D) Some fraudulent schemes take the form of multilevel marketing.
E) Multilevel marketing programs are often associated with pyramid schemes.

ANSWER

Answer: A
Explanation: A) Multilevel marketing can be a significant source of compensation, especially if a distributor has many “downliners,” as they are called.