"Excess Benefit Transactions" Are Those in Which Persons Who Have

question 39

True/False

"Excess benefit transactions" are those in which persons who have substantial influence over the not-for-profit organization engage in transactions that result in economic benefits to them that are excessive, such as unreasonable compensation, sale of assets at bargain prices, and lease arrangements.

---

Definitions:

Defect Unexpectedly

A situation where a flaw or imperfection in a product or system appears without warning.

Warning Defect

A failure in a product to adequately instruct or inform users of potential risks or hazards, rendering it dangerous.

Manufacturer

An entity or individual that produces goods or products from raw materials through the use of labor, machinery, and equipment.

Obvious Risks

Hazards or dangers that are clear and recognizable to a reasonable person without the need for explicit warning.