Which of the following is true of facilitation payments under the Foreign Corrupt Practices Act (FCPA)?

Question

Quizplus · Accepted Answer

Facilitation payments are a form of small bribes made to low-level officials to expedite routine or necessary government actions, such as obtaining permits or processing visas. The FCPA recognizes that they are a part of doing business in certain regions of the world and permits their use as long as they are not used to secure an improper advantage. However, the FCPA still requires companies to maintain appropriate records of facilitation payments and disclose them on their financial statements. Choice A is incorrect since the FCPA recognizes facilitation payments as acceptable in certain circumstances. Choice B is incorrect since the FCPA does not permit facilitation payments to secure exclusive contracts from foreign officials. Choice D is incorrect since the FCPA does not find facilitation payments acceptable if they involve securing new businesses overseas.

Which of the Following Is True of Facilitation Payments Under