A Major Impact of the Foreign Corrupt Practices Act of 1977

question 55

Multiple Choice

A major impact of the Foreign Corrupt Practices Act of 1977 is that registrants subject to the Securities Exchange Act of 1934 are now required to

• A) Keep records which reflect the transactions and dispositions of assets and maintain a system of internal accounting controls
• B) Provide access to records by authorized agencies of the federal government
• C) Records all correspondence with foreign nations
• D) Prepare financial statements in accordance with international accounting standards

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Definitions:

Contractual Arrangement

An agreement between parties that is enforced by law, specifying the duties and rights of each party.

Parent Company

A corporation that owns enough voting stock in another company to control management and operations by influencing or electing its board of directors.

Backward Integration

A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain.

Forward Integration

A business strategy where a company extends its operations by moving towards the direct control of its distribution or supply chain further down the production process.