Which of the Following Is True of Facilitation Payments Under

question 78

Multiple Choice

Which of the following is true of facilitation payments under the Foreign Corrupt Practices Act (FCPA) ?

• A)The FCPA recognizes them as bribes or an illegal form of payment.
• B)The FCPA permits them if they secure exclusive contracts from foreign officials.
• C)The FCPA finds them acceptable if they expedite a routine governmental action.
• D)The FCPA finds them acceptable if they involve securing new businesses overseas.

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Definitions:

Market Inefficiency

This occurs when resources are not allocated optimally in a market, resulting in lost potential value.

Market Outcome

The result of all the buying and selling activities within a particular market, including price levels and quantities traded.

Equitable

Equitable refers to something characterized by fairness, impartiality, and justice, particularly in the way people are treated or decisions are made.

Market Failure

When the free market's distribution of goods and services is inefficient, it typically results in a reduction of societal welfare.