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:

Direct Expense

Costs that can be directly traced to a product, service, or specific cost center, such as raw materials and labor.

Sales Commission Expense

A cost incurred by a company to compensate its sales staff, based on a percentage of the sales they achieve.

Department Store

A large retail store offering a wide variety of goods organized into departments.

Responsibility Centers

Entities within an organization responsible for controlling revenue and expenses, influencing the operational and financial results.