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Business English Exercises
 

Foreign Corrupt Practices Act

Answers to test questions and links to explanations

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 All tests  Quiz  FAQ  ESL Forum  Dictionaries Whether the FCPA Act applies to Joint venture companies of the US?
foreign corrupt practices act answer 1
As a result of SEC investigations in the mid-1970's, over 400 U.S. companies admitted making questionable or illegal payments in excess of $300 million to foreign government officials, politicians, and political parties.

Correct answer: (a) questionable

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foreign corrupt practices act answer 2
The abuses ran the gamut from bribery of high foreign officials to secure some type of favorable action by a foreign government to so-called facilitating payments that allegedly were made to ensure that government functionaries discharged certain ministerial or clerical duties.

Correct answer: (d) gamut

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foreign corrupt practices act answer 3
Congress enacted the FCPA to bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business systemm, and it was intended to have and has had an enormous impact on the way American firms do business.

Correct answer: (a) bring

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foreign corrupt practices act answer 4
Several firms that paid bribes to foreign officials have been the subject of criminal and civil enforcement actions, resulting in large fines and suspension and debarment from federal procurement contracting, and their employees and officers have gone to jail.

Correct answer: (b) debarment

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foreign corrupt practices act answer 5
Following the passage of the FCPA, the Congress became concerned that American companies were operating at a disadvantage compared to foreign companies who routinely paid bribes and, in some countries, were permitted to deduct the cost of such bribes as business expenses on their taxes.

Correct answer: (b) routinely

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foreign corrupt practices act answer 6
Accordingly, in 1997, the United States and thirty-three other countries signed the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

Correct answer: (a) Combating

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foreign corrupt practices act answer 7
The antibribery provisions of the FCPA make it unlawful for a U.S. person, and certain foreign issuers of securities, to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person.

Correct answer: (c) for or with

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foreign corrupt practices act answer 8
Since 1998, they also apply to foreign firms and persons who take any act in furtherance of such a corrupt payment while in the United States.

Correct answer: (c) furtherance

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foreign corrupt practices act answer 9
The FCPA also requires companies whose securities are listed in the United States to meet its accounting provisions.

Correct answer: (b) meet

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foreign corrupt practices act answer 10
These provisions, designed to operate in tandem with the antibribery provisions of the FCPA, require corporations to make and keep books and records that accurately and fairly reflect the transactions of the corporation and to devise and maintain an adequate system of internal accounting controls.

Correct answer: (d) tandem

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