Question

16) The primary purpose of the Foreign Corrupt Practices Act of 1977 was

A) to require corporations to maintain a good system of internal control.
B) to prevent the bribery of foreign officials by American companies.
C) to require the reporting of any material fraud by a business.
D) All of the above are required by the act.

Answer 1

The primary purpose of the Foreign Corrupt Practices Act of 1977 was to prevent the bribery of foreign officials by American companies.

Step-by-step explanation:

The primary purpose of the Foreign Corrupt Practices Act of 1977 was to prevent the bribery of foreign officials by American companies. The act was enacted in response to concerns about corporate corruption and to promote ethical business practices.

Under the Foreign Corrupt Practices Act (FCPA), it is illegal for American companies to offer or provide anything of value to foreign officials, political parties, or candidates with the purpose of obtaining or retaining business. The act also requires corporations to maintain accurate records and implement internal control systems to prevent bribery.

The Foreign Corrupt Practices Act of 1977 is an important piece of legislation that promotes transparency and integrity in international business transactions.