Acceptable Use Policy (AUP)policy to govern employee use of company computers.

Accounts payable ledgeran account book that reflects amounts owed to the providers of goods and services.

Accounts receivable ledgeran account book that records amounts owed to a broadcast station by its clients or to a cable system by its clients and subscribers.

Administrative managementa managerial approach emphasizing the effectiveness and efficiency of the total organization.

Affiliation contractan agreement governing the relationship between a network and an affiliated station.

Age Discrimination in Employment Actlegislation that forbids employers with 20 or more employees from discriminating in employment practices against any person 40 years of age or older.

Americans with Disabilities Actlegislation that prohibits employers with 15 or more employees from discriminating in employment practices against qualified individuals with disabilities.

Amortizationthe systematic reduction or writing off of an amount over a specific number of time periods, usually years.

Assetan object, right, or claim that is expected to provide benefits to its owners.

Audience flowthe movement of an audience from one television program to another on the same channel.

Auditorium testinga radio station research method that seeks reactions to short excerpts from recordings played to several dozen people gathered in a large room or auditorium.

Average quarter-hour (AQH) audienceaverage number of persons listening or viewing for at least five minutes in a 15-minute period.

Balance sheeta periodic financial statement that reports a company’s assets, liabilities, and net worth.

Bartera transaction involving the exchange of advertising time for goods or services. Also called a trade-out.

Barter-plus-cash programminga station acquires a syndicated program for a fee and also surrenders to the syndicator some of the commercial inventory.

Barter programminga syndicator provides a program to a station at no cost, but retains for sale some of the commercial inventory.

Basic cablethe minimum number of cable channels a subscriber may receive for a monthly fee.

Behavioral school of managementa school of management thought that emphasizes employee needs and their role in motivation.

Block programmingscheduling several television programs of similar kind or with similar audience appeal back-to-back. Also called vertical programming.

Bonus spotsspots given to an advertiser at no cost as a consideration for buying other spots. Also called spins.

Budgeta financial plan showing estimated or planned revenues and expenses.

Bureaucratic managementan approach to management that pays special attention to the structure of the organization and its impact on efficiency.

Call-out researcha radio station research method that seeks reactions to recordings by playing over the telephone short excerpts or “hooks.”

Cash disbursements journala transaction record of all funds disbursed by a company.

Cash flowoperating income before charges for depreciation, interest, amortization, and taxes.

Cash receipts journala transaction record of all funds received by a company from any source.

Checkerboard programmingscheduling a different TV program series in the same time period daily.

Churnthe turnover in cable television subscribers.

Civil Rights Actlegislation that prohibits discrimination in employment practices based on race, color, religion, sex, or national origin.

Classical school of managementa school of management thought that embraces administrative, bureaucratic, and scientific approaches to management.

Community Service Grant (CSG)a grant from the Corporation for Public Broadcasting to public radio and television stations for operating costs and program purchases.

Compact disc (CD)a recording whose content is encoded in digital form and read by a laser beam.

Contingency theorya management approach that takes into account the particular circumstances in reaching decisions and undertaking actions.

Contracta formal legal document containing all the terms of a proposed transaction between buyer and seller, and accompanied by exhibits reflecting details of all assets to be conveyed and all liabilities to be assumed.

Co-op advertisingthe cost of the retailer’s advertising is shared, usually between the retailer and the manufacturer. An abbreviation for cooperative advertising.

Core programmingFCC term to describe television programming designed primarily to meet the educational and informational needs of children 16 years old or younger.

Cost-per-rating point (CPP)the cost of a spot divided by the rating for the program or period in which it is broadcast.

Cost-per-thousand (CPM)the cost of reaching 1,000 targeted households or persons with a commercial.

Counter-programmingscheduling a TV program that appeals to a different audience from that sought by the competition in the same time period.

Cumean abbreviation for cumulative audience—an estimate of the number of different households or persons viewing or listening for at least five minutes in a specified period.

Current assetan asset expected to be sold, used, or converted into cash within one year.

Current liabilityamounts, taxes, and commissions payable in the near future, usually within one year.

Current ratiothe relationship of total current assets to total current liabilities.

DABdigital audio broadcasting.

Debt-equity ratiothe relationship of total long-term liabilities to stockholders’ equity.

Depreciationthe systematic reduction in value of long-lived assets due to use or obsolescence.

Designated market area (DMA)Nielsen’s term for the geographic area in which television stations in the survey market receive a preponderance of viewing.

Diaryan audience measurement method in which a sample of people record their listening or viewing activity in a small booklet.

Digital audio broadcasting (DAB)a technology that broadcasts audio programming in digital form.

Digital television (DTV)use of digital modulation and compression to broadcast video, audio, and data signals to television sets.

Digital video recorder (DVR)records TV content to a hard disk in digital format. Also called a personal video recorder.

Direct broadcast satellite (DBS)the transmission of a television signal by satellite to a small receiving dish.

Domain namean Internet address.

Duopolya situation in which two radio stations in the same service (i.e., AM or FM) in the same market are licensed to a single person or entity.

DVDoptical disc that can be used for storing data with high video and sound quality.

EBITDAearnings before interest, taxes, depreciation, and amortization.

Equal Employment Opportunity Commission (EEOC)the governmental agency that ensures compliance with laws prohibiting discrimination in employment practices.

Equal Pay Actlegislation that prohibits wage discrimination between male and female employees.

Expensescosts of services and facilities used in the production of current revenue.

Fair Labor Standards Actlegislation that sets forth requirements for minimum wage and overtime compensation.

Family and Medical Leave Actlegislation that requires employers with 50 or more employees to make available to them up to 12 weeks of unpaid leave during any 12-month period for specified family or medical reasons.

Fiber opticsthe conversion of electrical signals into light waves sent through glass fibers.

Financial interest and syndication rulesFCC rules that prohibited networks from ownership interest in, and syndication of, their prime-time entertainment programs. The rules were relaxed in the early 1990s to allow for network ownership interest in such programs.

First-run syndicationthe sale to television stations or other outlets of programs produced expressly for syndication.

Fixed assetan asset that will be held or used for a long term, usually more than one year.

Flippingthe use of a remote-control pad to switch from channel to channel within and between television programs.

Focus groupa research method in which a dozen or so people engage in a moderator-led discussion on a question of importance.

Formata radio station’s principal content element or sound.

Format searcha research method to determine if there is a need or place in a market for a radio format or for elements within a format.

Franchisean agreement between a governmental body and a cable television company setting forth the conditions under which the company may operate.

Frequencythe number of times a home or person is exposed to a program or commercial.

General journalan account book used to record “other” expenses, such as depreciation, amortization, and interest.

General ledgerthe basic accounts book, in two sections: one records figures for assets, liabilities, and capital; the other, income and expense account figures.

Generic promoa promotional announcement for a program series.

Goodwillthe term used to describe the intangible assets of a broadcast station, such as reputation, image in the market, and the value of the license.

Grazingthe continuous scanning of the TV dial with the use of a remote-control pad.

Grid cardreflects fluctuations in advertising rates according to supply and demand.

Gross impressions (GIs)the total number of exposures to a schedule of commercials.

Gross rating points (GRPs)the total of all rating points achieved for a schedule of commercials.

Hammockingplacing a new or untested television program between two popular programs.

Hawthorne Effectdespite a deterioration in working conditions, productivity is likely to increase when managers pay special attention to employees. Takes its name from Western Electric’s plant in Hawthorne, IL, where the phenomenon was observed.

Head-to-head programminga strategy whereby a television station competes directly against another station (or stations) by scheduling a similar program or one with similar audience appeal in the same time period.

Hierarchy of needsAbraham Maslow’s theory that human beings have certain basic needs that are organized in a hierarchy.

High-definition television (HDTV)a television system using more than 1,000 scan lines and an increased width-to-height ratio.

Hooksee call-out research.

Horizontal programmingsee strip programming.

House accountsaccounts that require no selling or servicing and on which no commissions are paid.

Households using television (HUT)the percentage of all television households in a survey area with TV sets in operation at a particular time.

Hygiene factorsFrederick Herzberg’s term to describe factors associated with conditions surrounding work, such as salary, benefits, and job security.

Image promotionan attempt to establish, shift, or solidify public perceptions of a station.

Income statementa periodic financial statement that reports a company’s revenues, expenses, and resulting profit or loss. Also called an operating statement or profit and loss (P and L) statement.

Information superhighwaya term coined to describe the projected highcapacity networks and information services interconnecting every home and business in the country.

Internetworldwide network of computer networks; also called the Net.

Internet Service Provider (ISP)a company that connects subscribers directly to the Internet. Also called Internet Access Provider.

Leased access channela cable television channel on which time may be purchased by individuals or groups for the transmission of programs.

Liabilityan obligation to pay an amount or perform a service.

Local marketing agreement (LMA)a contractual agreement whereby a radio or a television station sells a block of air time to a third-party programmer, who uses the time to broadcast content, including commercials, over the station. May also be applied to a situation where the licensee sells only its commercial inventory to a third party and retains programming control.

Local origination channela cable television channel equipped and maintained by the cable system to provide locally originated programming.

Logoa distinctive symbol that identifies a station and often incorporates its call letters and frequency or channel number.

Long-term liabilityan obligation, such as bank debt, mortgages, and program contracts, to be paid over an extended period of time.

Lossthe excess of expenses over revenue.

Lotterya contest containing the elements of prize, chance, and consideration.

Low-power television (LPTV)a television station that broadcasts to a limited geographical area, usually about 10 to 15 miles in radius.

Lower-level managersthose responsible for overseeing the day-to-day performance of employees.

Managementthe process of planning, organizing, influencing, and controlling to accomplish organizational goals through the coordinated use of human and material resources.

Management by objectives (MBO)a management approach whereby all employees establish objectives designed to assist in the achievement of organizational goals, and the progress toward attaining them is reviewed periodically.

Management sciencea school of management thought that uses mathematical models to simulate situations and to project the outcomes of different decisions.

Market perceptual studya research method to determine target audience perceptions of a station.

Metro areaa geographical area generally corresponding to the metropolitan area defined by the U.S. Government’s Office of Management and Budget.

Middle managersthose responsible for the coordination of activities designed to assist the organization in achieving its overall goals.

Motivatorsthe term coined by Frederick Herzberg to describe factors associated with job content, such as achievement, recognition, and advancement.

Multiplea number by which the cash flow of a company is multiplied to determine the offering price.

Multiple system operator (MSO)a company that operates more than one cable television system.

Must carryFCC rule providing that television stations may demand carriage on cable systems within their designated market area.

National Telecommunications and Information Administration (NTIA)the White House telecommunications policy office, located within the Department of Commerce.

Net lossthe excess of all expenses, including taxes, over revenue.

Net profitthe excess of revenue over all expenses, including taxes.

Net worththe owners’ equity in a company, reflecting the difference between total assets and total liabilities.

Nontraditional revenue (NTR)revenue from sources other than the sale of airtime.

NSI areaNielsen’s term for a market’s metro and designated market area counties, plus other counties necessary to account for approximately 95 percent of the average quarter-hour audience of stations in the market.

Occupational Safety and Health Actlegislation that requires employers to ensure that the workplace is free of hazards that could cause illness, injury, or death.

Occupational Safety and Health Administration (OSHA)the governmental agency that administers the Occupational Safety and Health Act.

Off-network syndicationthe sale to stations or other outlets of programs formerly aired on a television network.

Operating expensethe expense of performing normal business activities as opposed to the expense of financing the business.

Operating lossthe excess of operating expenses over revenue.

Operating profitthe excess of revenue over operating expenses, excluding depreciation, amortization, interest, and taxes.

Operating statementsee income statement.

Orientationthe process whereby new employees are introduced to other employees and the station.

“Other” expensesnonoperating cash and noncash costs of a business, usually including depreciation, amortization, and interest.

Pay cablechannels added to basic cable offerings for which an extra subscriber fee is required.

Pay-per-view (PPV)cable programming for which the subscriber pays on a per-program or per-event basis.

Payolathe practice whereby recording company representatives secretly reward disc jockeys for playing or plugging certain recordings.

PEG channelcable television channel allocated for public, educational, and governmental use.

People meterelectronic metering system used by Nielsen to measure audiences for broadcast and cable networks and nationally distributed bartersyndicated programs.

Per-inquiry advertisingan advertiser pays a commercial rate based on the number of responses generated by the advertising.

Personal video recorder (PVR)see digital video recorder.

Piracythe unauthorized reception of a cable television signal.

Playlistthe list of recordings played by a radio station.

Plugolathe on-air promotion of goods and services in which someone responsible for selecting the material broadcast has a financial interest, without disclosing that fact to the audience.

Policy bookcontains the philosophy and policies of a broadcast station and sets forth the responsibilities of individuals and departments.

Pregnancy Discrimination Actlegislation that forbids discrimination in employment practices based on pregnancy, childbirth, or related medical conditions.

Prepaid expensean expense paid in advance of its occurrence.

Pretax lossthe excess of expenses, including depreciation, amortization, and interest, but excluding taxes, over revenue.

Pretax profitthe excess of revenue over expenses, including depreciation, amortization, and interest, but excluding taxes.

Prime-time access rule (PTAR)discontinued rule generally forbidding network-affiliated television stations in the top-50 markets from airing more than three hours of network or off-network programming between 7:00 P.M. and 11:00 P.M. (ET).

Profitthe excess of revenue over expenses.

Profit and loss (P and L) statementsee income statement.

Program promotionthe promotion of a station’s content.

Promoan announcement promoting a station and/or its content. An abbreviation for promotional announcement.

Public access channela cable television channel for which individual members of the public or groups provide content.

Ratingin television, the percentage of all television households or persons in a survey area viewing a particular station. In radio, the percentage of all persons in a survey area listening to a particular station.

Reachthe number of different homes or persons exposed to a program or commercial.

Request for proposals (RFP)an invitation from a governmental body to submit a proposal for the establishment of a cable television system.

Retransmission consentlegislation that permits a station to waive its “mustcarry” right in return for the right to require its consent before a cable system may carry its signal.

Revenuethe inflow of resources to a broadcast or cable business from the sale of time or the provision of services.

Rotationthe frequency with which a recording is played by a radio station.

Sales journala transaction record of billings to clients for commercials run over a certain period of time, usually a month.

Saturation schedulea heavy commercial load aired when targeted homes or persons are tuned in.

Scientific managementa systematic approach to management with an emphasis on productivity.

SDARSsatellite digital audio radio services.

Share (of audience)in television, the percentage of households or persons using television tuned to a particular station. In radio, the percentage of all listeners tuned to a particular station.

Specific promoa promotional announcement for one program in a series.

Spectrum plana moderate number of spots scheduled throughout the day.

Spinssee bonus spots.

Spot schedulea series of commercials aired in only one or two periods of the day.

Station repa company that represents a radio or television station in the sale of time to national advertisers and advises the station on the purchase, scheduling, and promotion of programs.

Strip programmingscheduling a TV program series at the same time each day, usually Monday through Friday. Also called horizontal programming.

Superduopolya situation in which three or more radio stations in the same service (i.e., AM or FM) and in the same market are licensed to the same person or entity.

Syndicated program exclusivity rule (syndex)a rule protecting a local television station’s syndicated programs against duplication from signals imported by a cable television system.

Syndicatorscompanies that sell programs or features to radio and television stations and other outlets.

Systems theorya management approach that views an organization as a system of parts related to each other and to the external environment.

Telcoan abbreviation for a telephone company.

Television networkthe FCC defines it as an entity providing more than fifteen hours per week of prime-time entertainment programming to interconnected affiliates on a regular basis. Such programming must reach at least 75 percent of the nation’s television households.

Theory Xa philosophy of human nature, advanced by Douglas McGregor, suggesting that managers must coerce, control, and even threaten to motivate employees.

Theory Ya philosophy of human nature, advanced by Douglas McGregor, suggesting that employees are capable of accepting responsibility and exercising self-direction.

Tiera level of service offered by a cable television company.

Time spent listening (TSL)the time a person listens to a radio station during a specific period of the day.

Top managersthose who coordinate an organization’s activities and provide its overall direction.

Total quality management (TQM)a management approach that focuses on the customer and emphasizes quality in everything the organization undertakes.

Trade-outsee barter.

Trailing cash flowa company’s cash flow for the most recent 12-month period, which may or may not correspond with the fiscal year.

Underwritingthe provision of funds by businesses for the production and airing of programs on public radio and television stations in exchange for announcements in the programs.

Union contractan agreement governing relations between an employer and unionized employees.

Vendor support programa method whereby a retailer obtains manufacturer dollars to cover advertising costs.

Venture capitalfinancing in which the company providing the funds receives an ownership interest in the facility to be acquired, as well as interest on the funds advanced.

Vertical programmingsee block programming.

Webcastingcarriage of a station’s signal on the World Wide Web.

Web pageunits of information on one or more computer screens, often with links to other pages or graphics.

Web sitelocation of a computer called a server that contains the home pages for a company.

World Wide Web (WWW)a portion of the Internet formatted with hypertext links.

Zappingusing a remote-control pad to change TV channels to avoid commercials.

Zippingthe fast-forwarding of videocassette recorders through commercials in recorded programs.