The Program Expense Ratio for a Not-For-Profit Organization Will Improve

question 150

True/False

The program expense ratio for a not-for-profit organization will improve if the organization shifts costs from fund-raising to program expenses.

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Definitions:

Form a Contract

The process of creating a legally binding agreement between two or more parties.

Consideration

The benefit which is bargained for between the parties and is the essential reason for a party entering into a contract.

Bargained-For Exchange

A fundamental principle in contract law where both parties must exchange something of value for a contract to be considered valid and enforceable.

Genuine Assent

The agreement to enter into a contract based on a clear understanding of its terms, without any duress, fraud, or undue influence.