The city created a legally separate entity to operate a county hospital. The city council appoints a voting majority of the board of the hospital. The city cannot impose its will on the hospital and there is no potential for a financial benefit or financial burden to the city. The county hospital would be a(n)
A) Primary government.
B) Component unit.
C) Related organization.
D) Affiliated organization.

Question

Quizplus · Accepted Answer

The county hospital is a related organization because the city appoints a voting majority of the board but cannot impose its will, nor is there a financial benefit or burden to the city.

The City Created a Legally Separate Entity to Operate a County