Which of the following is true about the Foreign Corrupt Practices Act?
A) It prohibits employees of U.S. firms from making payments to low-level government employees.
B) It covers payments made to business executives.
C) It outlaws an employee from making payments to any person when the employee has "reason to know" that the payments might be used to corrupt the behavior of officials.
D) Companies and individuals found violating the act are given a warning.

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act (FCPA) outlaws an employee from making payments to any person when the employee has "reason to know" that the payments might be used to corrupt the behavior of officials. It also covers payments made to government officials, not just business executives. Violating the act can result in both civil and criminal penalties, including fines and imprisonment, rather than just a warning. Additionally, the act prohibits bribes to any level of government employees, not just low-level ones.

Which of the Following Is True About the Foreign Corrupt