The Foreign Corrupt Practices Act of 1977 Makes It Illegal

question 67

Multiple Choice

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to

• A) attempt to make large payments or bribes to influence policy decisions of foreign governments.
• B) offer foreign businesses any type of incentive for purchasing their company's products and services.
• C) change their ethical standards when dealing with foreign firms.
• D) give even small tips or gifts in countries where such gifts are customary business practices.
• E) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.

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Definitions:

Return On Total Assets

A financial ratio that measures a company's effectiveness in using its assets to generate profit, calculated by dividing net income by the average total assets.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Return On Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets, calculated by dividing net income by total assets.