CBO Regulatory Compliance & Risk Management 5

Question 1

What is the primary function of the Foreign Corrupt Practices Act (FCPA) for US businesses?

Accepted Answer

It prohibits US companies from bribing foreign government officials

Answer

The FCPA makes it illegal for US persons and businesses to bribe foreign government officials to obtain or retain business.

Question 2

Under the Fair Credit Reporting Act (FCRA), what must an employer do before taking adverse action based on a background check?

Accepted Answer

Provide the applicant a copy of the report and a summary of rights

Answer

Before taking adverse employment action based on a consumer report, employers must give the applicant the report and an FCRA rights summary so they can dispute inaccuracies.

Question 3

Which of the following is an example of a preventive control in a compliance program?

Accepted Answer

Employee training that teaches how to avoid conflicts of interest

Answer

Preventive controls are designed to stop a violation or error from occurring, and training is a classic example of this type of control.

Question 4

A business experiences a workplace accident and files a workers' compensation claim. Which risk management technique does workers' compensation insurance represent?

Accepted Answer

Risk transfer

Answer

Workers' compensation insurance transfers the financial risk of workplace injuries from the employer to the insurer.

Question 5

What is 'regulatory arbitrage' in a compliance context?

Accepted Answer

Exploiting differences between regulatory regimes to gain a competitive or cost advantage

Answer

Regulatory arbitrage occurs when a business structures activities to take advantage of gaps or differences between regulatory requirements across jurisdictions.

(CBO) Certified Business Operator Practice Test

(CBO) Certified Business Operator Practice Test

CBO Regulatory Compliance & Risk Management 5