Companies That Are Subject To, but Fail to Comply With

question 71

Multiple Choice

Companies that are subject to, but fail to comply with, the Foreign Corrupt Practices Act of 1977

• A) may do so legally by obtaining an exemption.
• B) will be automatically dissolved.
• C) may be subject to fines and officer imprisonment.
• D) may be forced to sell their foreign subsidiaries.

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Definitions:

Law of Diminishing Marginal Utility

states that as a person consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.

Principal-agent Problem

A dilemma occurring when one person or entity (the agent), is able to make decisions on behalf of, or that impact, another person or entity: the principal.

Complementary Resource

A good or service that enhances the use or value of another good or service when the two are used together.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in a given timeframe.