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:

Holder-Of-Record Date

The specified date on which the shareholders of record are entitled to receive a forthcoming dividend or participate in corporate events.

Announcement Date

The specific date on which a company releases significant information to the public, often regarding earnings, product launches, or other major events.

Firm-Commitment Basis

An underwriting process where the underwriter buys the entire issue of securities from the issuer and sells them to investors, assuming full financial risk.

Underwriter

A person or entity that assesses and accepts the risk of insurance or issue of securities, setting terms for coverage or offering prices for shares.