Which of the following is NOT a characteristic of a Ponzi scheme?

In a Ponzi scheme, the fraudulent operation relies heavily on the influx of funds from new investors to pay returns to earlier investors, creating an illusion of a profitable business. A key characteristic of such schemes is that they promise high returns with minimal risk, which entices people to invest.

The option that indicates actual commerce occurring with investors' funds does not align with the essence of a Ponzi scheme. In contrast to legitimate investments, Ponzi schemes typically do not engage in any real or productive business operations; they simply redistribute funds among investors. Consequently, option C accurately describes something that is not characteristic of a Ponzi scheme, as these schemes are often devoid of actual commerce or legitimate investment activities. Instead, they fundamentally rely on deception regarding the flow and use of funds to maintain the illusion of profitability.