Professional in Human Resources (PHR) Practice Exam

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What is the primary objective of the Foreign Corrupt Practices Act (FCPA)?

To regulate financial transactions in foreign markets

To prohibit corrupt payments to foreign officials

The primary objective of the Foreign Corrupt Practices Act (FCPA) is to prohibit corrupt payments to foreign officials. This legislation specifically targets bribery and corruption in international business transactions, aiming to promote ethical standards and transparency. By making it illegal for companies to offer or give anything of value to foreign officials for the purpose of influencing their decisions, the FCPA seeks to foster fair competition and uphold integrity in international operations.

This focus on preventing bribery helps create a level playing field for businesses competing in foreign markets, ultimately supporting business practices that are both lawful and ethical. The law not only applies to U.S. companies operating abroad but also to foreign corporations and individuals who engage in business activities within the United States.

The other options do pertain to aspects of international business and conduct but do not encapsulate the primary goal of the FCPA, which is firmly centered on addressing corruption through the prohibition of bribery to foreign officials.

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To ensure fair competition among American companies

To establish guidelines for international trade

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