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 an
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