Question

Rio Business Corporation pays potential clients, including private foreign companies and the representatives of foreign labor organizations to facilitate business. If Rio knows that the payments will be passed on to a foreign government, this practice is:_________.
a. illegal if the payments violate the foreign corrupt practices act.
b. legal because a third party acts as a "go-between."
c. legal because private parties are involved on both sides of the deal.
d. legal because the payments are intended to facilitate business.

Answer 1

Answer:

The answer is a. illegal if the payments violate the foreign corrupt practices act.

Explanation:

The practice is illegal and violates the Foreign Corrupt Practices if Rio Business Corporation is aware of paying potential clients including private foreign companies (and representatives of foreign labor organizations) money in order to facilitate business, or seal deals.