Question

Fraternal benefit societies are described by all of the following, EXCEPT:

Select one:
a. They provide insurance to their members.
b. They can be religion-based.
c. They include ethnic or charitable organizations.
d. They include stock and mutual companies.

Answer 1

Fraternal benefit societies do not include stock and mutual companies, which are for-profit entities contrasting the non-profit nature of fraternal organizations.

Step-by-step explanation:

Fraternal benefit societies are described by all of the following, EXCEPT:

• They provide insurance to their members.
• They can be religion-based.
• They include ethnic or charitable organizations.
• They include stock and mutual companies.

Fraternal benefit societies are organizations that often have a social purpose and provide various types of support, such as insurance, to their members. They can be based on religious, ethnic, or charitable foundational principles. However, they are distinct from stock and mutual companies, which are conventional for-profit business entities designed to provide profit to their shareholders or policyholders, respectively. Thus, the correct answer to the question is option (d) 'They include stock and mutual companies'.