Identification of Component Units. Following are descriptions of several relationships between primary governments and other organizations. Using just the information provided, indicate whether you believe the primary government should include the organization as a component unit. Please explain your answer. a. Tesser Municipal Hospital is a not-for-profit corporation, whose governing board is appointed by the Tesser city mayor. The hospital manages its day-to- day operations and sets its own fee schedule. The governing board provides preliminary approval of the hospital budget, with final approval required by the Tesser city council. Bonded debt for the hospital is repaid with the hospital's revenues.