Under the Foreign Corrupt Practices Act,American Business Firms Are Required

question 14

Multiple Choice

Under the Foreign Corrupt Practices Act,American business firms are required to:

• A)Refuse to transact business in countries that sanction official corruption.
• B)Report all bribery attempts to the International Monetary Fund and World Bank.
• C)Maintain an adequate system of internal control limiting access to company assets to authorized personnel.
• D)Maintain a list of all personnel employed by the company during the last 10 years.

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Definitions:

Contribution Margin Ratio

The contribution margin ratio is the ratio of the contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.

Fixed Monthly Expenses

Costs that do not vary from month to month, such as rent, loan payments, and insurance premiums.

Contribution Format Income Statement

An income statement format that separates fixed and variable costs to highlight the contribution margin of a business.

Unit Sales

The total number of individual units of a product sold by a company within a specific period of time.