ExpertHard1 markMultiple Choice
CPA · Question 15 · Area II: Business Law
Which of the following acts is generally prohibited under the Foreign Corrupt Practices Act (FCPA)?
Which of the following acts is generally prohibited under the Foreign Corrupt Practices Act (FCPA)?
Answer options:
A.
Payments to foreign officials to expedite routine governmental actions, such as processing visas.
B.
Reasonable expenditures for travel and lodging of foreign officials directly related to product promotion.
C.
Payments to a foreign official to influence a decision to award a government contract.
D.
Payments to private foreign businesses to secure a commercial contract.
How to approach this question
The FCPA targets bribery of foreign *government* officials to get *business*. It allows 'grease' payments for routine paperwork.
Full Answer
C.Payments to a foreign official to influence a decision to award a government contract.✓ Correct
The FCPA prohibits giving anything of value to a foreign official to influence an official act or decision to obtain or retain business. It contains an exception for 'facilitating payments' for routine governmental actions.
Common mistakes
Thinking all payments to foreign officials are banned (grease payments are allowed). Thinking private bribery is covered by FCPA.
Practice the full CPA REG Practice Exam 4
72 questions · hints · full answers · grading
More questions from this exam
Q01A CPA is representing a client in an IRS examination. The client has requested that the CPA not p...HardQ02A tax return preparer is engaged to prepare a tax return for a client who has a significant deduc...HardQ03Regarding the burden of proof in a civil tax proceeding, which of the following statements is cor...HardQ04A taxpayer filed their Year 1 individual income tax return on April 1, Year 2. The return reporte...HardQ05Under the Ultramares doctrine regarding a CPA's liability for negligence to third parties, which ...Hard