What Is the Primary Provision of the Foreign Corrupt Practices

question 40

Multiple Choice

What is the primary provision of the Foreign Corrupt Practices Act?

• A) To specify which corrupt practices are acceptable under U.S. law
• B) To specify how to account for bribes paid by U.S. corporations to obtain business from foreign governments
• C) To inform internal auditors how to detect fraud in multinational corporations
• D) To prohibit U.S. companies from paying bribes to foreign government officials to obtain business

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Definitions:

Minimize Losses

A strategy or approach aimed at reducing the amount of losses incurred in a business or investment.

Highly Differentiated

Refers to products, services, or markets where there is significant variation in features, quality, or branding, making each distinct from others.

Marginal Revenue

The extra income a company gains by selling an additional unit of a product or service.

Average Revenue

The revenue a company receives per unit of sales, calculated by dividing total revenue by the number of units sold.