Certified Management Accountant Practice Exam 2026 - Free CMA Practice Questions and Study Guide

Question: 1 / 430

What is the purpose of the Foreign Corrupt Practices Act?

To regulate corporate governance in the U.S.

To prohibit U.S. corporations from making illegal payments to foreign officials

The Foreign Corrupt Practices Act (FCPA) was enacted primarily to address corruption by U.S. companies and promote ethical conduct in international business dealings. The core purpose of the Act is to prohibit U.S. corporations and citizens from making unlawful payments to foreign officials in order to obtain or retain business. By making these illegal actions a violation of U.S. law, the FCPA aims to promote fair competition and integrity in international trade, thereby reducing corruption in international business practices.

This legislative framework not only places accountability on U.S. companies but also reflects a commitment to uphold a higher standard of ethical business conduct globally. It encourages businesses to follow lawful and transparent practices rather than resorting to bribery or unethical incentives to secure contracts and business advantages abroad.

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To enhance global competition among U.S. firms

To establish ethical guidelines for international trade

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