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* Visionary Leaders Visionary companies need leaders who can articulate and inspire Leaders who communicate with staff about the future Leaders who can explain the benefits of building the business These leaders need to be passionate and single-minded A Ponzi scheme is a fraudulent investment operation that pays returns to investors out of the money paid by subsequent investors rather than from profit. Click: The Ponzi scheme usually offers high or consistent returns in order to entice new investors. Click: Initially, without the benefit of precedent or objective prior information about the investment, only a few investors are tempted, usually for smaller sums. Click: Thirty days later, the investor receives a statement saying that they have made the promised return. Click: Although in fact, the return is a fraud, the perceived value of the investment has grown Click: At this point, the investor will have more incentive to put in additional money and, as word begins to spread Click: Other investors grab the opportunity to participate Click: Leading to a cascade effect deriving from the promise of extraordinary returns * Some investors may take their ‘perceived profits’ out of the fund. However, as no actual investment is being made with the funds of the scheme, the return to the initial investors is being paid out of the investments of new entrants Click: One reason that the scheme initially works so well is that early investors commonly reinvest their money in the scheme (it does, after all, pay out much better than any alternative investment) Click: Thus those running the scheme do not actually have to pay out very much (net) Click: They simply have to send statements to investors showing them how much they earned Click: In order to maintain the deception that the scheme is a fund with high returns * As word about the scheme spreads, many more individuals and institutions become involved Click: Investing more capital Click: And receiving balance statements sugg
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