Question

Using appropriate terminology, explain why public radio stations, which rely on contribution from listeners, always seem to be in financial jeopardy. ( 10 marks)

Answer 1

Answer: Public radio stations: It is a nonprofit radio station supported by govt. funds a nationwide network. Its purpose is to educate, inform, enlighten, and enrich the public. It works as public broadcasting generates trusted news, defines our national culture, and economic growth, etc.

public radio stations, which rely on contribution from listeners, always seem to be in financial jeopardy:

1. The public radio station, in economic terms it is a public good, all the citizens can enjoy its benefits without paying.
2. As public radio stations are dependent on funds on local govt, listeners, etc they might not receive the amount on time.
3. Their management operations are not properly structured to undertake the major expansion in the program hours, lack of coordination in the implementation of decisions, lack of actions taken, and confusions lead overspending from the budget.
4. Their capability to raise funds from private grants and contributions has not fully developed.
5. They do not have a formal plan to compensate for any revenue deficiency.
6. They do not have a management information system to provide essential reports such as budget reports, expenditure reports and revenue reports in order to monitor reports so as allocate funds accordingly.
7. Public radio stations provide free services to the public. As this is a public good, the public has an incentive to freeride and not contribute financially to support the radio station.

In order to avoid financial jeopardy, they should work on reducing costs, improved their management system, increase productivity, and increase efficiency. coverage should be enhanced attempts to provide social benefit programs that are not provided by commercial broadcasters.