Television station WMSD is located in a midwestem city of 1.750.000 people. The station is incorporated, with the majority of the stock owned by one family. The grandfather, age 68. who founded the station, has already begun to make gifts of the stock to other family members. His daughter, age 47. is currently the vice president and will manage the station after her father retires or dies. The station is affiliated with one of the three national television networks. WMSD has 156 employees. Of these. 20 appear on the air. 7 are managers or officers, and 129 are clerical, production, or marketing employees. The payroll for a recent year amounted to S43.550.000. WMSD's assets include buildings and a transmission tower valued at S47.5 million on the books, but with a replacement value of S62 to $64 million. The station's equipment, including cameras, videotape machines, six autos, three trucks, a leased helicopter, and sophisticated electronic equipment and computers, has a book value of $52.6 million and a replacement cost of S73.5 million. In recent years, the station's earnings after taxes were as follows: year 1, $58 million; year 2. $65 million; year 3, $40 million. The income was derived from selling commercials in the local market and from network revenue. Interestingly, in recent years one sales representative was responsible for almost one-quarter of the local advertising revenue. WMSD is the second- ranked station in the market and has become aggressive in the past three years in trying to increase its market share. The station management has faced an uphill battle in gaining ground on the number-one station, and there is concern that both stations have lost earnings to cable television. The station's cash flow is seasonal, with maximum receipts occurring during December. Any losses before special events, such as sporting championships, would have a major impact on profitability. Your assignment is to develop a risk management plan for WMSD. You are to consider all types of loss exposures and all the risk management alternatives discussed in this chapter. Give at least one example of how the risk management techniques of avoidance, assumption, loss prevention, loss reduction, and insurance may be used, explaining why each technique is appropriate