In order to secure contracts, Lamtech, a telecommunications company, failed to properly record millions of dollars in travel for about 1,000 foreign officials who worked for statecontrolled telecom companies. This practice, which amounts to bribery, is prohibited by the _____ Act.
A) Securities
B) SarbanesOxley
C) Foreign Corrupt Practices
D) Anticorruption Organization

Question

In order to secure contracts, Lamtech, a telecommunications company, failed to properly record millions of dollars in travel for about 1,000 foreign officials who worked for state­controlled telecom companies. This practice, which amounts to bribery, is prohibited by the _____ Act.
A) Securities
B) Sarbanes­Oxley
C) Foreign Corrupt Practices
D) Anticorruption Organization

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act (FCPA) prohibits US companies and their subsidiaries from paying bribes to foreign officials to obtain or retain business. The situation described in the scenario, in which Lamtech failed to properly record travel expenses for foreign officials as a way to secure contracts, amounts to bribery and is prohibited by the FCPA.

In Order to Secure Contracts, Lamtech, a Telecommunications Company, Failed