US CMA Part 2 · Chapter 9 · Question 18 of 23
Under the anti-bribery provisions of the US Foreign Corrupt Practices Act, which payment is generally permitted?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A small facilitating payment to a foreign clerk to expedite a routine, non-discretionary government action such as processing a visa
Explanation
The FCPA prohibits paying anything of value to foreign officials to obtain or retain business, whether directly or through intermediaries. It contains a narrow exception for facilitating ("grease") payments made to expedite routine governmental actions that involve no discretion. Many companies prohibit such payments as a matter of policy, and other countries' laws may not allow them.
More Professional ethics MCQs
- Q20A company evaluates its performance not only on profit but also on its impact on employees, communities and the natural environment. This…
- Q21Which of the following practices is MOST likely to undermine an organization's ethical culture even if a written code of conduct exists?
- Q22A US company discovers that one of its overseas suppliers uses child labor, which is not prohibited by local law in that country. Which…
- Q23Near year-end the controller of a division tells a management accountant to defer recording $250,000 of known expenses until next year so…
- Q1Which of the following are the four overarching ethical principles in the IMA Statement of Ethical Professional Practice?