A Company Pays Bribes in Foreign Countries in Order to Conduct

question 83

Multiple Choice

A company pays bribes in foreign countries in order to conduct operations there.What legal consequences can the company face?

• A)Legal consequences under Glass-Steagall
• B)No legal consequences as long as the bribe was legal in the country where it was paid.
• C)Legal consequences under the Foreign Corrupt Practices Act
• D)No legal consequences as long as the company was acting in the best interests of shareholders
• E)No legal consequences as long as the company had no choice but to pay the bribe if it wished to do business in the foreign country.

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Definitions:

Activity Cost Pools

A category in cost accounting where costs are allocated based on specific activities, allowing for more accurate determination of the sources of overhead.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities and resources that go into their production.

Activity-Based Costing System

A costing methodology that assigns costs to products or services based on the activities and resources that go into producing them, aiming for more accurate product costing.

Direct Materials Cost

The cost of raw materials that are directly used in the manufacturing of a product.