Question

olivia runs a home - based business that distributes high - quality, handmade baskets. she sells the products and earns commissions on the baskets sold by four other basket representatives. this is an example of
product trade - name franchising.
strategic partnering.
product licensing.
multi - level marketing.
question 18
5 pts
illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as
marketing rackets.
pyramid schemes.
pressure - cooker tactics.
deceptive advertising gimmicks.

Explanation:

• Multi - level marketing: In multi - level marketing (MLM), individuals (like Olivia) sell products and also earn commissions from the sales of other distributors they recruit. This matches the description where Olivia sells products and earns from the sales of four other basket representatives.
• Pyramid schemes: Pyramid schemes are illegal. They focus on getting high fees from new "distributors" (who are often promised high returns mainly from recruiting others rather than from legitimate product sales). The description of organizations emphasizing high - fee collection from potential distributors fits the definition of pyramid schemes.

Answer:

• First question: multi - level marketing
• Second question: pyramid schemes