Bribery And Corruption Chapter 10 Exam Questions

Package Title: Godfrey Test Bank

Course Title: Ethics and Business WileyPLUS

Chapter Number 10

Question Type: Multiple Choice

1) All of the following are forms of corruption, EXCEPT

a) bribery

b) stealing

c) fraud

d) graft

Title: Chapter 10 Test Bank, Question 1

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: Stealing is illegal but is not viewed as a form of corruption.

2) The following definition by Black’s Law Dictionary describes which one of the following choices? “A vicious and fraudulent intention to evade the prohibitions of the law. The act of an official or fiduciary person who unlawfully and wrongfully uses [their] station or character to procure some benefit for [themselves] or for another person, contrary to duty and the rights of others.”

a) bribery

b) corruption

c) fraud

d) graft

Title: Chapter 10 Test Bank, Question 2

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: The definition is how Black’s Law Dictionary describes corruption.

3) Fraud is viewed as a kind of deception. Which one of the following choices best describes this?

a) intentional

b) unintentional

c) negligent

d) passive

Title: Chapter 10 Test Bank, Question 3

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: Fraud is when a person intentionally lies or is deceitful.

4) Graft is corruption involving who?

a) celebrities

b) the wealthy

c) public officials

d) white-collar workers

Title: Chapter 10 Test Bank, Question 4

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: Graft is when public officials use public money that is acquired unlawfully.

5) Bribery is illegal and unethical. Those who are bribed are best described by which one of the following choices?

a) they are willing participants in the act

b) they have nothing to lose

c) they will likely face jail time

d) they are usually influenced to act differently than they ordinarily would

Title: Chapter 10 Test Bank, Question 5

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: While those who are bribed may face jail time due to the nature of the bribery, that is not always the case. Being bribed may cause people to act in a way they normally would not, which might include breaking the law.

6) People might be bribed to avoid having information released to the public or to police. This may cause those being bribed to do which one of the following choices?

a) act in unethical and illegal ways

b) pay money to keep the information secret

c) face jail time if the information is released

d) claim that the information is untrue

Title: Chapter 10 Test Bank, Question 6

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: People are bribed for different reasons, and some of those reasons may be to keep illegal actions or information under wraps. Those being bribed may pay, act unethically or illegally, and/or face jail time if the information is released.

7) A government official works in importing and exporting and is responsible for ensuring certain materials do not enter the country, but they accept a significant amount of money to look the other way when an illegal item comes through the port. Which one of the following choices best describes their crime?

a) corruption

b) bribery

c) graft

d) fraud

Title: Chapter 10 Test Bank, Question 7

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: Accepting money in order to act in a way that is not typical is bribery.

8) All ______ is corruption, but not all corruption is defined as which term?

a) bribery; illegal

b) graft; unethical

c) bribery; bribery

d) fraud; intentional

Title: Chapter 10 Test Bank, Question 8

Difficulty: Medium

Bloomcode: Application

Min:

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: Bribery, graft, and fraud are all forms of corruption, but not all corruption is a form of bribery.

9) Which one of the following choices is the best way to complete this phrase? Corruption is normal and acceptable behavior

a) for large corporations since it’s how they do business

b) in some countries where the ethical norms are different

c) for government officials as they are immune from legal repercussions

d) when money is not involved

Title: Chapter 10 Test Bank, Question 9

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: In some countries, corruption is a normal part of doing business. It is not viewed as unethical and it might not be illegal. If it is illegal, it might not be viewed as an offense that requires a harsh penalty.

10) Corruption doesn’t hurt anyone except those who are involved directly in the act or exchange.

a) This is true because only the individuals involved could face jail time.

b) This is true because it can hurt a business’s reputation if an employee acts in a corrupt manner and no one else will be impacted.

c) This is false because corruption can have an impact on those indirectly involved, such as the community, suppliers, employees, and the economy.

d) This is false because those involved made sure to not implicate anyone else in the act or exchange.

Title: Chapter 10 Test Bank, Question 10

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: When corruption occurs, it can affect society and people indirectly. Competition, the economy, family members, and the like can all have a negative outcome due to corruption by individuals and businesses.

11) What is one thing that businesses can do to help reduce corruption among employees?

a) Create a policy that forbids corruption and states consequences of such behavior.

b) Hire executives who have influence over others.

c) Hire full-time law enforcement to be on-site and have an authoritative presence.

d) Perform background checks on all employees and monitor their Internet usage.

Title: Chapter 10 Test Bank, Question 11

Difficulty: Hard

Bloomcode: Evaluation

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: While all the choices could be considered, the best and most ethical and reasonable option is to create a company policy against corruption.

12) A state representative is fundraising for their next term. The state representative and the founder of an organization agree that legislation will be passed in return for the organization’s contribution to the state representative’s fundraiser. Which one of the following choices best describes this scenario?

a) bribery

b) fraud

c) donation

d) graft

Title: Chapter 10 Test Bank, Question 12

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: While this includes a public official, it does not directly relate to public funds. Since the payment is likely to be reported, it’s not quite fraud. However, this is a form of bribery where both parties are getting something they want.

13) Corruption only happens in undeveloped countries.

a) This statement is correct because undeveloped countries have fewer laws that are enforced.

b) This statement is correct because undeveloped countries are less educated.

c) This statement is incorrect because corruption can happen in any country.

d) This statement is incorrect because undeveloped countries still have ethical norms they follow.

Title: Chapter 10 Test Bank, Question 13

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: Corruption can happen in any country. It is not limited to undeveloped countries, even though there may be less enforcement of such acts.

14) A public organization has hired workers who are not legally allowed to work in the United States. Because of this, the workers are paid less than minimum wage and are also paid under the table, meaning no taxes are paid. Which one of the following choices best describes this scenario?

a) corruption

b) graft

c) bribery

d) fraud

Title: Chapter 10 Test Bank, Question 14

Difficulty: Hard

Bloomcode: Synthesis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: The company is fraudulently reporting their taxes and wages being paid to employees due to several not being on the books.

15) A subcontractor has a friend who awards bids for road maintenance in a large city. The subcontractor seems to always win the bid by being just below the other bids. It is suspected that the subcontractor and the friend are working together, and it is speculated that money is being exchanged. If money is being exchanged, what does that mean?

a) This is a form of bribery.

b) This is just how business is done.

c) This is a form of graft.

d) This is an example of a subcontractor doing outstanding work.

Title: Chapter 10 Test Bank, Question 15

Difficulty: Hard

Bloomcode: Synthesis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: The work being awarded is paid for with public funds, so this is an example of graft, not bribery.

16) Which one of the following choices best describes a situation in which someone lies about their abilities and skill to get a job?

a) corruption

b) fraud

c) graft

d) bribery

Title: Chapter 10 Test Bank, Question 16

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: The lies are intentional and the hiring employers were misled based on untrue information, so the person presented themselves fraudulently.

17) Which one of the following choices best describes a situation where someone does something in exchange for something else that is similar in value or meaning?

a) reciprocity

b) bartering

c) bribery

d) friendship

Title: Chapter 10 Test Bank, Question 17

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: Reciprocity is returning like for like in social behaviors.

18) Quid pro quo is a type of reciprocity often associated with what workplace practice?

a) money

b) sexual harassment

c) promotion

d) favors

Title: Chapter 10 Test Bank, Question 18

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: Quid pro quo is most often associated with some type of sexual harassment in the workplace.

19) When someone offers a gift without wanting anything in exchange, they are practicing what type of behavior?

a) quid pro quo

b) bribery

c) reciprocity

d) affection

Title: Chapter 10 Test Bank, Question 19

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: When someone gives a gift and expects nothing in return, they are showing affection and not acting in an ethically questionably manner.

20) Which one of the following choices best describes how a gift becomes a bribe?

a) The gift is expensive.

b) The gift giver expects something in return.

c) A gift is personalized for a specific person.

d) The gift is given in front of a group of people.

Title: Chapter 10 Test Bank, Question 20

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: When something is expected in return for receiving the gift, it becomes a bribe.

21) Reciprocity has both positive social impacts and which one of the following choices?

a) positive transactional requirements

b) negative ethical repercussions

c) positive career boosters

d) negative harmful uses

Title: Chapter 10 Test Bank, Question 21

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: Reciprocity can be used in both negative and positive manners depending on the intention of the initiator.

22) Reciprocity can be a negative or positive interaction between people depending on whom?

a) the initiator

b) the receiver

c) the observer

d) the supervisor

Title: Chapter 10 Test Bank, Question 22

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: The initiator of the interaction is typically the person who determines whether or not there are additional intentions of giving something and expecting something in return.

23) Giving someone money for them to do something in return that they normally would not do is bribery and is an example of

a) ethical actions

b) reciprocity

c) social norms

d) quid pro quo

Title: Chapter 10 Test Bank, Question 23

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: Bribery is an example of reciprocity, but it more specifically is an example of quid pro quo due to the “this for that” transaction.

24) Any tip given during a business transaction is considered a bribe.

a) true, because tips are not required in addition to payment

b) false, because tips can be allowed in some instances

c) true, because a tip is above the required payment and is a way to ask for something additional in return

d) false, because a tip is only a bribe when it is not requested

Title: Chapter 10 Test Bank, Question 24

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: A tip is not always a bribe. For example, a waitress may receive a tip but it is not viewed as a bribe.

25) When does a tip become a bribe?

a) The tip is given for no reason.

b) The tip is much larger than it should be given the circumstances.

c) The tip is given with expectations of receiving something of value in return.

d) The tip is given but not expected by the receiver.

Title: Chapter 10 Test Bank, Question 25

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: Tipping does not become a bribe unless it is given with the expectation of getting something in return.

26) When does a gift become a bribe?

a) It is given to show affection for an individual.

b) It is given for no reason.

c) It is given as a gesture of appreciation.

d) It is given with expectation of receiving something in return.

Title: Chapter 10 Test Bank, Question 26

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: A gift does not become a bribe until there is an expectation that something will be received in return.

27) Which item causes a conflict of interest and is used to persuade a certain behavior?

a) a tip

b) a gift

c) a bribe

d) jewelry

Title: Chapter 10 Test Bank, Question 27

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: When the item is given with the intent to persuade and with a conflict of interest, it becomes a bribe.

28) When something is given in private and with an expectation, it is known as what?

a) a tip

b) a bribe

c) a gift

d) reciprocity

Title: Chapter 10 Test Bank, Question 28

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: While this is a form of negative reciprocity, it is more specifically a bribe.

29) When money is given to someone who has provided excellent service to thank them for their actions, this is likely what?

a) a tip

b) a gift

c) a bribe

d) reciprocity

Title: Chapter 10 Test Bank, Question 29

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: A tip is commonly given to someone, such as a waitress, for excellent service without any expectation of something in return and is a way to say thank you.

30) Situations where bribery is likely to occur include all of the following, EXCEPT

a) structuring a business with checks and balances that make processes a little more complex

b) working in a career where tips and gifts are a normal part of doing business

c) having an informal process for business transactions

d) having a single person be in a powerful, decision-making position

Title: Chapter 10 Test Bank, Question 30

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: All are related to the seven deadly signs of bribery except structuring checks and balances where decisions and transactions have a few more people to oversee processes.

31) Sam works as a pharmaceutical sales representative. As part of his job, he often gives doctors samples to give to patients with the hopes that they will also prescribe his company’s medicines. Sam’s boss told him that he should also purchase some larger gifts to give to his clients to encourage them to prescribe their medicines for more patients. Sam must make sure that this type of incentive is viewed as which one of the following choices?

a) a gift

b) a tip

c) a bribe

d) a form of reciprocity

Title: Chapter 10 Test Bank, Question 31

Difficulty: Hard

Bloomcode: Evaluation

Min: 2

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: Sam needs to make sure that additional incentives are viewed as gifts and that he does not give them with the caveat that the doctors need to prescribe more medicines. It is also best that the gifts are not worth a large amount of money.

32) Julie works in human resources at a large corporation. Her boss mentioned that he appreciated her dedication and motivation. He then told her that there was an opportunity for promotion that would be opening soon. He then winked at her and said that he could put in a good word, but she would owe him. Julie wasn’t sure how to take this comment, but it could be a form of what?

a) a tip

b) a gift

c) a bribe

d) quid pro quo

Title: Chapter 10 Test Bank, Question 32

Difficulty: Hard

Bloomcode: Evaluation

Min: 2

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: With the statement asking for something in return for putting in a good word and it being related to a promotion at work, this is an example of quid pro quo.

33) The Foreign Corrupt Practices Act applies to all of the following, EXCEPT

a) United States companies

b) stockholders

c) informal social organizations

d) employees

Title: Chapter 10 Test Bank, Question 33

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Social organizations tend to be formed for specific purposes or interests and are not formal business organizations.

34) Offering money to encourage a business transaction to occur that is not accepted does not constitute a violation of the Foreign Corrupt Practices Act.

a) true, because the money was not accepted

b) true, because it was only an offer

c) false, because even the offer is unlawful

d) false, because making the offer is ethical

Title: Chapter 10 Test Bank, Question 34

Difficulty: Easy

Bloomcode: Comprehension

Min:

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution:

35) Some payments that aid in processes with foreign countries are exempt from the Foreign Corrupt Practices Act. These include all of the following, EXCEPT

a) processing governmental papers, such as visas

b) paying someone to let imported items get through customs

c) scheduling inspections for transportation of goods and services

d) obtaining permits to complete business operations

Title: Chapter 10 Test Bank, Question 35

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Paying someone to get items through customs is likely a bribe. Unless what is being paid is a tax or import/export fee of some kind, it is not legal.

36) In addition to the Foreign Corrupt Practices Act, the United States is also associated with which one of the following anticorruption guidelines?

a) United Nations Convention Against Corruption

b) UK Bribery Act of 2010

c) Anti-Unfair Competition Law of PRC

d) Clean Company Act

Title: Chapter 10 Test Bank, Question 36

Difficulty: Easy

Bloomcode:

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: The United Nations Convention Against Corruption has been adopted by many countries and provides common ground on anticorruption behavior between those countries, including the United States.

37) Which one of the following choices is a possible consequence of breaking China’s Criminal Law of the PRC in regard to damage to the interest of the state?

a) a financial fine

b) ten years imprisonment

c) confiscation of property

d) death sentence

Title: Chapter 10 Test Bank, Question 37

Difficulty: Easy

Bloomcode:

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: If the infraction is viewed as an extreme infraction, life imprisonment or the death penalty can be the penalty.

38) An individual who acts in a corrupt manner on behalf of a company, but is not a direct employee of a company cannot be

a) charged with corruption

b) found in violation of the Foreign Corrupt Practices Act

c) exempt from the Foreign Corrupt Practices Act

d) allowed to travel

Title: Chapter 10 Test Bank, Question 38

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: If an individual is acting on behalf of a company, even with an indirect association, they must follow the laws of the Foreign Corrupt Practices Act or risk being found in violation.

39) The Foreign Corrupt Practices Act applies to which of the following situations?

a) A U.S. organization conducts business with Chinese officials in Beijing.

b) A Chinese organization meets with an Indian organization in India.

c) A Canadian organization conducts business with a Mexican organization in the United States.

d) A European organization meets with another European organization in England.

Title: Chapter 10 Test Bank, Question 39

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: The Foreign Corrupt Practices Act applies to all U.S. businesses, even when conducting business in another country.

40) An organization is hiring foreign employees and needs to expedite the processing of their work visas to have the employees in place to begin work as soon as possible.

a) This is not allowed due to the guidelines of the Foreign Corrupt Practices Act.

b) This is not allowed because the company would be bypassing others waiting for a work visa.

c) This is allowed as an exemption under the Foreign Corrupt Practices Act guidelines.

d) This is allowed because the employees are not U.S. citizens.

Title: Chapter 10 Test Bank, Question 40

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Expediting the processing of work visas is exempt under the Foreign Corrupt Practices Act, and payments for this are allowed.

41) What does “actions of a similar nature” mean regarding exemptions to the Foreign Corrupt Practices Act?

a) payments that are made and are viewed as legal in a foreign country

b) payments that facilitate or expedite processes within legal bounds

c) ignoring unethical behavior that is viewed as normal in a foreign country

d) asking for special treatment by making payments to government authorities

Title: Chapter 10 Test Bank, Question 41

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Not all exemptions are listed, but when payments are given or received in order to meet business needs that foreign officials perform, and the payment is not above and beyond normal amounts, it is exempt from violating the Foreign Corrupt Practices Act.

42) A company based in the United States wants to merge with a company in Australia. However, the U.S. company is aware of another organization in India that would like to merge with the Australian company. To win the agreement, the company has planted a mole within the competing company to gain information as to their strategy to win the merger. What form of corruption would this likely fall under within the United Nations Convention Against Corruption?

a) bribery

b) trading in influence

c) abuse of Functions

d) various acts of corruption

Title: Chapter 10 Test Bank, Question 42

Difficulty: Medium

Bloomcode: Analysis

Min: 2

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Since this is not an action that specifically falls into one of the specific categories, it would fall into the pool of various acts of corruption. Not only is it unethical, but information also is being gathered in an illegal manner.

43) The OECD’s Anti-Bribery Convention focuses on which people being bribed to influence business decisions?

a) company employees

b) stockholders

c) public officials

d) lawyers

Title: Chapter 10 Test Bank, Question 43

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Public officials are the main focus on preventing bribery from occurring within the duties and responsibilities that may hinder or impact an international business transaction.

44) What makes the UK Bribery Act of 2021 different from the other corruption laws and agreements?

a) It doesn’t include public officials.

b) It includes private companies.

c) It includes more countries.

d) It doesn’t include fines as a penalty.

Title: Chapter 10 Test Bank, Question 44

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: The UK Bribery Act has a broader application to include private companies along with public officials.

45) When employees act in a corrupt manner, the companies they work for can also be at fault. This is true for which corruption law?

a) Depending on the act, the United States Foreign Corrupt Practices Act would hold a company and an employee guilty for corrupt behavior.

b) Brazil’s The Clean Company Act holds the company responsible for its employees’ behavior in an effort to encourage the company to police their employees.

c) The UK Bribery Act holds the company at fault and could punish the directors for corrupt behavior.

d) All of the above are true.

Title: Chapter 10 Test Bank, Question 45

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: All of the laws listed hold companies at fault, and many countries hold companies responsible for their employees’ actions; they are guilty by association.

46) Which of the following acts does not apply to both public officials and private sectors?

a) Singapore’s Prevention of Corruption Act

b) UK Bribery Act

c) Criminal Law of the PRC

d) OECD’s Anti-Bribery Convention

Title: Chapter 10 Test Bank, Question 46

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: The OECD’s Anti-Bribery Convention is specifically for public officials.

47) Charles is working as a representative on behalf of his company to close a deal with a company based on China. He knows that gifts are welcome when doing business in China and he wants to respect the customs as well as make good impression to help build a relationship. The company in China is connected to the Chinese government, and Charles knows that he could sway the company in his favor if he reaches out to his connection in the government and offers an incentive. If Charles did this, he would be in violation of the Foreign Corrupt Practices Act because

a) it could be viewed as a bribe even though it is acceptable in Chinese culture

b) Charles works for an American company

c) a foreign official would be involved

d) all of the above

Title: Chapter 10 Test Bank, Question 47

Difficulty: Hard

Bloomcode: Synthesis

Min: 3

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Charles works for an American company and if he asks his connection, who is a foreign official, to influence the business interaction, it does sound like a bribe will be involved.

48) The Foreign Corrupt Practices Act is very specific in that it details what is considered bribery. If a foreign official is involved and any form of payment is even offered, the act is unlawful. Why would one offer a foreign official a bribe as part of a business transaction between two companies in differing countries?

a) The foreign official helps oversee the successful transport of goods and services.

b) The foreign official oversees issuing licenses for work to be completed.

c) The foreign official can help persuade that a contract be awarded to a specific company.

d) The foreign official allows for paperwork to be processed at a faster rate to expedite the start of business operations.

Title: Chapter 10 Test Bank, Question 48

Difficulty: Hard

Bloomcode: Evaluation

Min: 3

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: Foreign officials are allowed to be paid under the Foreign Corrupt Practices Act for certain circumstances. However, paying a bribe so that a contract is awarded is not one of them.

49) Someone who bribes others does so for whose benefit?

a) their own

b) others’

c) society’s

d) their organization’s

Title: Chapter 10 Test Bank, Question 49

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: When someone bribes others, they are looking out for their own benefit, first and foremost.

50) When working in another country, it can be easy to fall into the temptation to act the same way as that country’s residents. What can occur in this situation?

a) a sense of fitting in by following the foreign norms of behavior

b) a loss of ethical boundaries when it comes to corruption

c) ensuring that the company’s well-being is at the forefront

d) following company policies and procedures for ethical behavior

Title: Chapter 10 Test Bank, Question 50

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: If one falls into the temptation to act in a corrupt manner, their ethical boundaries are being blurred, and there is not a strong grounding to resist unethical behavior that would otherwise be avoided.

51) Which of the following choices ensures that employees do not act in a corrupt manner?

a) clear job description

b) a diversity plan

c) a mission statement

d) anticorruption and bribery policy

Title: Chapter 10 Test Bank, Question 51

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: To encourage anticorruption behavior, it is beneficial to have a company policy in place with the expectation that employees will follow it.

52) A company’s anticorruption and bribery policy should include all of the following choices, except

a) what gifts are allowed to be given during a business transaction

b) what gifts are allowed to be received during a business transaction

c) what the penalty is for acting outside the policy boundaries

d) how much one can spend on a hotel while staying in another country

Title: Chapter 10 Test Bank, Question 52

Difficulty: Easy

Bloomcode: Comprehension

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: A company may have guidelines for what can be spent on lodging while traveling abroad, but it is likely not found within the anticorruption policy.

53) When countries have varied definitions for what constitutes bribery, what should an employee do to ensure appropriate behavior when working abroad?

a) Have a clear understanding of what is allowed in the visiting country.

b) Follow the company’s policies and procedures.

c) Use their own ethical guidelines for what is right.

d) Do what is best for the company to achieve its goals.

Title: Chapter 10 Test Bank, Question 53

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: If a company has a policy in place for what is allowed and what is not allowed when it comes to bribery, the employee should use the policy as a guide for appropriate behavior.

54) If a company does not have a formal policy on what is acceptable in terms of gifts or other forms of payment that could be viewed as bribery, what should an employee do?

a) Accept the gift to ensure the business relationship remains positive.

b) Don’t accept the gift and report the gift giver to the authorities.

c) Understand the intention of the gift and determine whether additional expectations go along with the gift.

d) Accept the gift knowing that there is an expectation of getting something in return.

Title: Chapter 10 Test Bank, Question 54

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: Without a formal policy, the employee may consider speaking to their HR representatives. However, understanding the purpose of the gift can help an individual determine whether they are willing to accept it because it could be a form of bribery.

55) One way a company can allow for employees to give gifts when it is customary in do to so in another country is to do all of the following, EXCEPT

a) give the employee an account for gift giving as long as it helps with the business transaction

b) provide company-branded items to be given as gifts

c) allow for a company-sponsored meal as a show of appreciation

d) set limits on the value of the gift

Title: Chapter 10 Test Bank, Question 55

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: If giving a gift will help with a business transaction, it is likely a form of bribery and should not be done.

56) Why do many companies not allow employees to accept gifts?

a) They don’t want other employees to feel left out.

b) The employees may expect gifts during all business interactions.

c) The gifts could influence business decisions.

d) The company wants to determine if the gift is of value.

Title: Chapter 10 Test Bank, Question 56

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: A gift could influence business decisions in a negative way and may take the focus off the appropriate decision criteria.

57) Sometimes employees get gifts from clients during the holidays. Companies may allow these gifts, but with restrictions best described by which one of these choices?

a) The gifts must be shared with the entire company.

b) The gifts must be under a certain monetary amount in value.

c) The gifts must be approved by a supervisor.

d) The gifts must be perishable items, such as fruit or a baked good.

Title: Chapter 10 Test Bank, Question 57

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: When gifts are allowed, they likely have a limit on what their value can be.

58) What are some instances when a company may change their policy to allow the acceptance of gifts?

a) during the holidays

b) during times of crisis

c) during times of staff shortages

d) all of the above

Title: Chapter 10 Test Bank, Question 58

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: A company might allow employees to accept gifts during the holidays, during times of crisis (such as a pandemic), and during staff shortages to allow for a show of appreciation.

59) When employees are allowed to accept gifts, they should strictly have what purpose?

a) show appreciation

b) encourage special treatment

c) highlight a person’s potential for promotion

d) receive something in return

Title: Chapter 10 Test Bank, Question 59

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: A gift’s purpose should only be to show appreciation for a job well done.

60) Sandy works in sales and often travels to other countries to work with foreign clients. Due to this, she has a spending account to use to charge meals when she takes clients out for a business meal. Sandy’s company likely does what to ensure bribery issues are avoided?

a) limits the amount of money that can be spent on each person during the meal

b) pays for anything that the client wants during the meals, including alcohol

c) only allows for fast food to be purchased

d) requires at least five people from the client’s company to join the meal

Title: Chapter 10 Test Bank, Question 60

Difficulty: Medium

Bloomcode: Analysis

Min: 2

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: There are likely limits on the amount to be spent on each person during the meal. This will ensure there is no persuasion involved in the purchase of extravagant meals and drinks.

61) As a way to discourage possible bribery from occurring, a company may ask an employee to do what?

a) Report gifts after they have been given to clients.

b) Take a client to dinner and buy them whatever they want to eat and drink.

c) Offer the client a trip to Las Vegas as a thank you for their business.

d) Get preapproval for gifts before they are given to clients.

Title: Chapter 10 Test Bank, Question 61

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: Companies may ask for preapproval for meals, gifts, or other shows of appreciation before an employee meets with a client.

62) Why might a company require an employee to get preapproval before offering a gift to a client?

a) to ensure the client will not be offended

b) to have a way to verify future receipts with what was approved

c) to ensure the company can afford the gift to be offered

d) for consistency with what other clients are gifted

Title: Chapter 10 Test Bank, Question 62

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: Preapproval might be required to ensure gifts are given as planned and are usually under a specific value or within certain parameters.

63) One way that companies monitor their employees’ spending is by having them submit all of the following, EXCEPT

a) expense reports

b) time sheets

c) spending plans

d) receipts

Title: Chapter 10 Test Bank, Question 63

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: Time sheets do not track spending of employees.

64) When an employee gives a monetary gift, it should be given as what type of gift to not be categorized as a bribe?

a) a gift card

b) a money order

c) a donation

d) a tip

Title: Chapter 10 Test Bank, Question 64

Difficulty: Medium

Bloomcode: Application

Min: 1

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: A donation can be given when nothing is expected in return and if it is going to a reputable organization that has been approved by the company.

65) When working abroad in another country, Dave and his potential foreign client are out to dinner. The client tells Dave that if he would like to land the contract to have their companies work together, he should consider providing an incentive. The client tells Dave that this is how his company chooses with whom they will work all the time. The client also says it is perfectly normal to give a gift to show how motivated they are to work with one another. Per company policy, Dave would need to get approval for any type of gift to be given. What else should Dave do?

a) Ask the client what type of gift he would like.

b) Research the local laws and regulations in the country.

c) Offer to give the client a specific dollar amount as a donation once the contract is awarded.

d) Nothing. Dave should give the client a gift if he wants to win the contract.

Title: Chapter 10 Test Bank, Question 65

Difficulty: Medium

Bloomcode: Application

Min: 3

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: Dave should not only speak with his company as to what is allowed, but he should also be aware of any laws and regulations within the foreign country. Even if gifts are a normal part of business, they may not be legal, and he could face a penalty if caught.

66) Shelly has recently been hired with a new company. She is still learning about the organization and wants to do well. Shelly is on her first visit to Bangladesh to meet with a potential supplier. This supplier is the only one that can provide needed material for a new product Shelly’s company would like to manufacture. The supplier told Shelly that they only work with companies that treat them well. The supplier then winked at Shelly. Shelly saw the wink and is not sure what to do. Who is the best person Shelly should reach out to about this issue?

a) her co-worker who has visited Bangladesh before

b) her translator who has been accompanying her

c) her company’s legal compliance department

d) her sales manager

Title: Chapter 10 Test Bank, Question 66

Difficulty: Hard

Bloomcode: Evaluation

Min: 3

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: Since Shelly is in a new situation and in a new position with a new company, she should reach out to the legal compliance department at her company for guidance. While her sales manager and coworker can probably provide some insight, this leans more toward a corruption issue, and it best to follow the legal guidance in this situation.

67) The M in PERMA asks an individual to consider what when dealing with a bribery situation?

a) What will be achieved with the action?

b) How does this action fit into my own purpose?

c) What monetary value does this have?

d) Will this action help me move up the ladder?

Title: Chapter 10 Test Bank, Question 67

Difficulty: Medium

Bloomcode: Analysis

Min: 1

AACSB: Ethics

Learning Objective: 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: The M stand for meaning and asks how this action will align with the individual’s purpose in life.

Question Type: Short Answer

68) Why is corrupt behavior so harmful?

Title: Chapter 10 Test Bank, Question 68

Difficulty: Medium

Bloomcode: Analysis

Min: 5

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: Corrupt behavior is harmful because it not only hurts those who are directly impacted by the actions, but it also hurts society, the community, and the economy. It can cause harm to individuals physically, emotionally, and financially. Corrupt behavior can lessen one’s quality of life and lead to more serious crimes.

69) Compare the three forms of corruption.

Title: Chapter 10 Test Bank, Question 69

Difficulty: Medium

Bloomcode: Analysis

Min: 5

AACSB: Ethics

Learning Objective: LO 10.1 Define and explain the differences among bribery, graft, and corruption.

Section Reference: Sec: 10.1 Bribery, Graft, and Corruption

Solution: The three forms of corruption are graft, bribery, and fraud. All are illegal and unethical. Bribery is the most common form of corruption and is when someone tries to persuade an individual to do certain behaviors or act in a manner that does not align with their morals. Fraud is intentional deceitfulness that deprives another. Graft specifically deals with the corrupt acts of public officials.

70) What situations can cause bribery to occur during business interactions with foreign companies?

Title: Chapter 10 Test Bank, Question 70

Difficulty: Medium

Bloomcode: Application

Min: 3

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: When a country has different cultural norms, gifts and other forms of appreciation can blur the lines of professional and personal relationships. If gifts are a traditional way of doing business, one could be offended if not offered or accepted. However, gifts may not be allowed to be given or accepted by another culture.

71) What is the difference between positive reciprocity and negative reciprocity?

Title: Chapter 10 Test Bank, Question 71

Difficulty: Medium

Bloomcode: Analysis

Min: 3

AACSB: Ethics

Learning Objective: LO 10.2 Differentiate among a gift, a tip, and a bribe and identify the conditions when a gift or tip can become a bribe.

Section Reference: Sec: 10.2 Social Norms, Bribes, and Gift Giving

Solution: Positive reciprocity occurs when kindness and appreciation are shown to others with the expectation that kindness and appreciation will be shown in return. Negative reciprocity occurs when a transactional requirement that leads to unethical or harmful behavior is the outcome. This is known as quid pro quo.

72) What is the difference between the United Nations Convention Against Corruption and the Clean Company Act?

Title: Chapter 10 Test Bank, Question 72

Difficulty: Medium

Bloomcode: Analysis

Min: 3

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: The UNCAC has over 160 countries that have ratified the anticorruption laws. It has a broad application by covering five areas and various forms of corruption. The Clean Company Act is for Brazilian companies and holds the companies responsible for any corrupt action committed by their employees.

73) To which countries does the Foreign Corrupt Practices Act apply, and when must it be followed?

Title: Chapter 10 Test Bank, Question 73

Difficulty: Medium

Bloomcode: Application

Min: 3

AACSB: Ethics

Learning Objective: LO 10.3 Describe the legal frameworks around bribery in the United States and other countries.

Section Reference: Sec: 10.3 Legal Frameworks for Bribery and Gift Giving

Solution: The Foreign Corrupt Practices Act is for U.S. companies. All U.S. companies, even when conducting business outside the United States, must follow the rules and policies. Anyone acting on behalf of a U.S company must follow the rules and policies.

74) What are some of the ways that companies try to encourage ethical behavior and provide guidance when employees encounter situations that could lead to possible corruption?

Title: Chapter 10 Test Bank, Question 74

Difficulty: Medium

Bloomcode: Application

Min: 5

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: Companies can implement several policies and procedures to help ensure employees do not commit corrupt behavior. They can have formal anticorruption and bribery policies and procedures that are clear. It’s also important that employees are informed of these and have a chance to ask questions for clarification. These policies should also state any repercussions or penalties for employees who do not follow the policy. Companies can require employees to get preapproved for any gifts, hospitality, or other perks. There may also be parameters set, such as a value, dollar amount, or specific items that can be given or accepted.

75) How does using the process of PERMA help in a situation that could involve corruption?

Title: Chapter 10 Test Bank, Question 75

Difficulty: Medium

Bloomcode: Application

Min: 5

AACSB: Ethics

Learning Objective: LO 10.4 Explain how you can use your personal values to avoid and mitigate situations of bribery, graft, and corruption.

Section Reference: Sec: 10.4 Tools for Individuals

Solution: If an individual is dealing with possible corrupt situation, PERMA walks them through questions to help them consider how their actions could make them feel, how they could impact their lives and their relationships with others, and how they can reach their goals. If the answers to the questions are not in the individual’s best interests or make them feel that the outcome is not beneficial or ethical, they should not follow through with the action.