The Primary Purpose of the Foreign Corrupt Practices Act of 1977

question 47

Multiple Choice

The primary purpose of the Foreign Corrupt Practices Act of 1977 was

• A)to require corporations to maintain a good system of internal control.
• B)to prevent the bribery of foreign officials by American companies.
• C)to require the reporting of any material fraud by a business.
• D)All of the above are required by the act.

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Definitions:

Investment

The allocation of resources (such as capital, time, or effort) in the expectation of receiving future benefits or returns.

Credit Balance

The amount of money in a financial repository that surpasses the debit balance and is available for use.

Consolidated Goodwill

The excess value of purchase price over the fair market value of identifiable assets and liabilities acquired during consolidation.

Common Stock

An equity security representing ownership in a corporation, entitling holders to a share of the corporation's residual assets and earnings.