Fractional-ownership company Avantair halted operations in late June in need of new financing. The company has taken the working name NewCo and announced its plan to more forward, which includes downsizing to a core group of employees and only 25 aircraft. If it can retain at least 300 of its current 620 shareowners and attract enough financing, it would be rebranded in order to restart operations early next month.
Earnings of some of the biggest U.S. corporations are coming under pressure because of weakening demand from customers in Europe. Conditions in Europe were much more unfavorable for U.S. companies in the first quarter than expected. Companies selling to Europe don't expect that troubled economies in southern Europe will get worse, but they are worried the biggest economies are showing signs of weakness.
Josh Linkner writes that leaders can undermine themselves by committing one of these missteps: lacking focus and flip-flopping on priorities; not using metrics to track progress but engaging in fantasy; lacking passion and creativity; and not paying attention to personal relationships.
Investors have come to the conclusion that it is more beneficial for auditors to perform tax services as well, despite fears that the audit will not be independent, according to a study published in the Journal of the American Taxation Association. The study found that an increase in the ratio of tax fees to total fees paid to an auditor correlated with a rise in the company's earnings per share and stock price. One reason for this could be the spillover of knowledge when tax and audit services are provided by the same source.