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Foreign corrupt practices act

Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise.

Recently, Emily and Richard have invested in Faster Distribution Company Incorporated, a small publicly traded company. They each own 40% of the stock of Faster Distribution. Leeds is a U.S. corporation with its common stock traded on the New York Stock Exchange. The Leeds' home office is in London, and Faster Distributing Company is registered and located in Germany.

Faster is prepared to pay $125,000 to a German politician to allow Leeds' purchase of Faster to proceed.

ââ?¬¢Would you condone this?
ââ?¬¢Why or why not?
ââ?¬¢Support your reasoning with a law or regulation that allows or prohibits this.

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Yes, I would definitely NOT condone this because it is not only illegal, but unethical as well. I would not approve this policy of Faster because it is a violation of corporate ethics and highly unethical to ...

Solution Summary

Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise.

Recently, Emily and Richard have invested in Faster Distribution Company Incorporated, a small publicly traded company. They each own 40% of the stock of Faster Distribution. Leeds is a U.S. corporation with its common stock traded on the New York Stock Exchange. The Leeds' home office is in London, and Faster Distributing Company is registered and located in Germany.

Faster is prepared to pay $125,000 to a German politician to allow Leeds' purchase of Faster to proceed.

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