When the Telecommunications Act 1996 Removed the Limit on How

question 33

Multiple Choice

When the Telecommunications Act 1996 removed the limit on how many radio stations a company could own,

• A)format specialization continued on FM
• B)stations were bought and sold at an unprecedented rate
• C)the industry became dominated by a few powerful owners
• D)talk became the hottest format on AM radio
• E)all of these

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Definitions:

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not influence future business decisions.

Basic Overheads

The routine, essential expenses incurred in the operation of a business, such as rent, utilities, and salaries.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Cash Outflows

Money that is spent or transferred out of a business, project, or venture.