Module 2- Activity 2 9548/ Business Ethics

1. What are the negative implications of Illegal Pyramiding to an individual?

The negative implications of illegal pyramiding to an individual is it can

cause trauma especially, if that money he/she try to invest is a debt. For
example, the AMAN before in which many people committed suicide and turn
into crazy due to the fact that they loss so much money and most of their money
they try to put in is from the sale of their animals and their personal money.

2. What are the negative implications of illegal pyramiding to the economy?

Because people are afraid of being scammed and taken advantage,

legitimate recruitment for investors and members will decline. As a result, the
economy will suffer as these businesses help the economy expand, but no one
wants to participate because of illegal pyramiding

3. What are the negative implications of Illegal Pyramiding to the Society?

The society will mistook the multilevel marketing to illegal pyramiding, they
will think that all of the recruitment is a scam, in short they will have a trust issue
with the legal marketing.

4. (In your own opinion) Why do people, having heard of major cases of
pyramiding schemes in the past, still get ensnared on the same trap by
these fraudsters?
 Maybe because it is an easy money, mostly, the victims of this pyramiding
are those who are in need. If the person is really eager to earned money without
exerting too much effort, I know he/she will be persuaded by the people who has
skills in sales talking.

5. If you get invited by a friend to join a network where you are most probably
doubting the legitimacy, how would you tell him/her that you refuse to join?

I would tell him/her that this kind of networking is a fraud, and I will prove it
through telling the 8-point test by DSAP. This will also help them not to be fooled
in the future and I know for sure he/she will share this to the others so that there
are no victims again.