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Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
Under the Foreign Corrupt Practices Act (FCPA), which of the following is NOT true?
Correct Answer: B) Bans companies from participating in markets where small facilitation payments are common for licenses or permits
The FCPA does not ban companies from operating in markets where facilitation payments are common. While it prohibits bribery to gain or retain business, it allows limited “grease payments” to expedite routine governmental actions, such as processing permits, if they are legal locally. However, such payments must be accurately recorded in accounting books. The Act focuses on transparency, accurate record-keeping, and preventing corruption, not restricting market entry.
Why Other Options are Incorrect:
A) Defines bribery as offering money with corrupt intent to influence an official act benefiting a company’s business interests
This is accurate. The FCPA clearly defines bribery as offering or giving anything of value to a foreign official to improperly influence their decisions for business advantage.
C) Prohibits paying foreign agents when it is known the funds will be passed as bribes to restricted recipients
This is true. The Act holds companies liable if they knowingly make payments to intermediaries who will use the funds for bribery.
D) Extends its jurisdiction to cover the global operations of U.S.-based corporations
This is correct. The FCPA applies to all U.S. companies, citizens, and certain foreign entities, regardless of where the conduct occurs worldwide.
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