Which of the Following Would Most Likely Be Classified as a Facilitation

question 31

Multiple Choice

Which of the following would most likely be classified as a facilitation payment?

• A) A payment that encourages a high-ranking government official to facilitate a new business deal with a foreign supplier
• B) A payment that encourages a lower-level government official to perform a routine service more rapidly than it otherwise would be performed
• C) A payment that encourages a private-sector company to accelerate the delivery of goods or services in an international shipping transaction
• D) A payment that provides a lawful commission to a foreign agent or representation to enable a plant or other operational facilities to bypass certain regulations established by the Foreign Corrupt Practices Act

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Definitions:

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory in a given period, calculated by dividing the cost of goods sold by the average inventory.

Liquidity Ratio

A financial metric indicating how quickly a company can convert assets into cash to meet short-term obligations.

Return On Assets Ratio

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.

Receivables Turnover Ratio

A financial metric used to measure how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.