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A Financial Case History
Multi-level marketing companies often rely on complex financial models in order to build their business. The financial structure is often what distinguishes between a legal multi-level marketing organizations from illegal pyramid schemes.
Research the company Herbalife and their financial model.
Write a two page paper in which you respond to the following questions:
- Is Herbalife a legal multi-level marketing company or an illegal pyramid scheme? Cite evidence regarding their financial model to support your answer.
- Compare and contrast the Herbalife financial model to that of one of the multi-level companies in terms of overall structure, legality, and ethics.
- Why does Herbalife appeal to prospective entrepreneurs?