The Foreign Corrupt Practices Act (FCPA)

question 34

Multiple Choice

The Foreign Corrupt Practices Act (FCPA) :

• A) can fine individuals up to $2 million and five years in prison for violations of the law's bribery provisions.
• B) makes it a criminal rather than a civil offense to bribe an official of a foreign government.
• C) makes it legal for bribes paid by managers of one corporation to managers of another.
• D) contains an exception for facilitating payments intended only to restrict "routine governmental action."

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Definitions:

Liability

An obligation or debt that an entity owes to another party, which is expected to be settled through the transfer of assets or services.

Variable Costs

Costs that vary directly with the level of production output or sales volume, such as materials and labor.

Activity Level

The volume of work or the number of transactions handled by a business or department, which can drive the allocation of costs based on activity-based costing principles.

Fixed Costs

Overheads that stay the same no matter the quantity of goods produced or sold, like rent, salaries, and insurance.