The Foreign Corrupt Practices Act of 1977 Makes It Illegal

question 67

Multiple Choice

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to

• A) attempt to make large payments or bribes to influence policy decisions of foreign governments.
• B) offer foreign businesses any type of incentive for purchasing their company's products and services.
• C) change their ethical standards when dealing with foreign firms.
• D) give even small tips or gifts in countries where such gifts are customary business practices.
• E) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.

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Definitions:

Two Proprietorships

Two separate businesses or commercial ventures, each owned by a single individual.

Fair Value

An assessment of an asset or liability's market worth, determined by current market rates or appraisals.

Noncash Assets

Assets that are not in the form of cash but can be converted into cash, such as investments, real estate, and inventory.

Book Value

The net value of an asset, calculated as the asset’s original cost minus depreciation, amortization, or impairment costs.