Question 1

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?

Accepted Answer

Look at the ownership structure: owned by users/patients, surplus reinvested. This is the definition of a mutual or co-operative.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Selecting NGO because of the 'reinvested surplus' aspect, missing the 'owned by patients' key detail.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA BT — Business & Technology Practice Exam 3

More questions from this exam