How does a pyramid structure work?

What will be an ideal response?

Answer: In a pyramid structure, a family first creates a company in which it owns more than 50% of the shares and therefore has a controlling interest. This company then owns a controlling interest—that is, at least 50% of the shares—in another company. Notice that the family controls both companies, but owns only 25% of the second company. Indeed, if the second company purchased 50% of the shares of a third company, then the family would control all three companies, even though it would own only 12.5% of the third company. The farther you move down the pyramid the less ownership the family has, but it still remains in complete control of all the companies.

Business

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Which of the following is an accurate definition of scareware?

A) It is a kind of anti-spam process which relies on the human desire to use malware. B) It is a kind of social engineering used to persuade people that a computer is infected when it is not. C) It is a type of software that prevents users from downloading malware by displaying warnings. D) It is software which provides a shield against spam and mirrors it back into the network.

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