Ratio analysis is important for a company to keep a close eye on what is happening within their organization. It can bring to attention any weaknesses or strengths that may be evolving. It is important when there is a red flag of weakness that it is investigated to determine what must be repaired to bring it back to the positive.

Discussion Topic: The Foreign Corrupt Practices Act $($FCPA$)$

Scenario: You are the owner of a small business that imports goods from Bolivia to the U$.$S$.$ One of your senior executives, Fiona Weston, just returned from a trip to check in on the company's manufacturers in La Paz, and Weston informs you that she was forced to make payments to several Bolivian officials to ensure that a recent shipment made its way through customs quickly. You are concerned about the payments, about precedent, and about the possible ethical and legal implications of such payments. Weston has assured you that these officials' payments were "necessary" and "acceptable" within Bolivia, but you remain unconvinced and are especially troubled by the ethical consequences of such payments; especially since these are prohibited under the FCPA.

After reading about the FCPA in Chapter $2$ of your text, discuss the following:

Do you think these payments are allowed under the FCPA? Explain.

Should you be concerned about the payments? What factors impacted your decision?

How would you now proceed, given what Weston has shared with you? Be specific and concrete in describing your next steps.