ExpertEasy2 marksMultiple Choice
ACCA · Question 05 · Business & Technology
Section A
"MediCare Mutual" is a healthcare provider that is entirely owned by the patients who use its services. Any surplus revenue generated is reinvested into improving clinic facilities rather than being paid out as dividends to external shareholders.
Which type of organizational structure does MediCare Mutual represent?
Section A
"MediCare Mutual" is a healthcare provider that is entirely owned by the patients who use its services. Any surplus revenue generated is reinvested into improving clinic facilities rather than being paid out as dividends to external shareholders.
Which type of organizational structure does MediCare Mutual represent?
Answer options:
A.
Public Limited Company (PLC)
B.
Non-Governmental Organisation (NGO)
C.
Co-operative / Mutual society
D.
Public sector organisation
How to approach this question
Look at the ownership structure: owned by users/patients, surplus reinvested. This is the definition of a mutual or co-operative.
Full Answer
C.Co-operative / Mutual society✓ Correct
A co-operative or mutual society is an organization owned and democratically controlled by its members (who are often its customers or employees). Profits are typically reinvested or shared among members.
Common mistakes
Selecting NGO because of the 'reinvested surplus' aspect, missing the 'owned by patients' key detail.
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