Q. . “Pyramid Scheme”, recently seen in news is related to which of the following?
Red Book
Red Book

[A] Ecological sustainability

[B] Demographic dividend

[C] Unsustainable business model

[D] Bridging Digital Divide

Answer: C
Notes:

About the Pyramid Scheme:

A pyramid scheme is a sketchy and unsustainable business model where a few top-level members recruit newer members. Those members pay upfront costs up the chain to those who enrolled them. As newer members in turn recruit underlings of their own, a portion of the subsequent fees they receive is also kicked up the chain. In a pyramid scheme, the major profit comes from the recruitment fees rather than the sale of the actual products. Multi-Level Marketing operations (MLMs) are similar to pyramid schemes with one difference: they involve the sale of tangible goods.

 

Source: EPIC May 2022


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