All of the Following Are True of the U

question 55

Multiple Choice

All of the following are true of the U.S. Foreign Corrupt Practices Act except for which of the following:

• A) The U.S. law carries anti-bribery limitations beyond U.S. political boundaries to within the domestic boundaries of foreign states.
• B) This Act prohibits individuals, firms, and foreign subsidiaries of U.S. firms from paying anything of value to foreign government officials in exchange for obtaining new business or retaining existing contracts.
• C) The Act permits so-called facilitation payments to foreign government officials if relatively small amounts of money are required to expedite goods through foreign custom inspections, gain approvals for exports, obtain speedy passport approvals, and related considerations.
• D) The payments described in c above are considered legal according to U.S. law and the laws of countries in which such payments are considered routine
• E) Bribery is necessary if a U.S. company is to win a contract that comprises more than 10% of its annual sales.

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Definitions:

Compounded Monthly

Interest on an investment or loan that is calculated at the end of each month and then added to the principal sum, increasing the amount on which future interest is calculated.

RRSP

Registered Retirement Savings Plan, a Canadian financial account designed for retirement savings, offering tax benefits.

Compounded Nominal Rate

A nominal rate that is compounded refers to the stated interest rate of an investment or loan, not taking into account the effects of compounding over specific periods.

Effective Rate

The effective rate is the interest rate on a loan or investment, adjusted for the actual number of compounding periods per year, giving a true annual rate.