Pfizer Was Investigated by the SEC for Violating the Foreign

question 19

Multiple Choice

Pfizer was investigated by the SEC for violating the Foreign Corrupt Practices Act (FCPA) because it allegedly:

• A) Made improper payments to foreign officials to obtain regulatory and formulary approvals
• B) Made improper payments to foreign officials to obtain sales
• C) Made improper payments to foreign officials to obtain increased prescriptions for the company's pharmaceutical products
• D) All of the above

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Definitions:

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company to reinvest in its core business or to pay debt.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Dividend

A payout of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Treasury stock represents shares of a company's own stock that it has reacquired and holds, which do not confer voting rights or dividend payments.