One of the ways that many companies raise capital is through charging fees. These fees are usually charged on top of regular service prices, allowing companies to advertise low rates, and then make up for it by tacking on the fees. It is hard to find an industry that has been more successful at this than the airline industry. In the last year or so, we have seen a definite uptick in airline fees, from baggage fees ($15 for the first checked bag and $25 for each additional) to higher cost in-flight meals and snacks to even adding surcharges for …read more

Earlier, the Obama Administration had proposed taxes on multinationals in order to help raise $200 billion in revenue. However, at the urging of big business, that plan has been shelved. Businesses have managed to dodge a tax bill that some were concerned would tax businesses at a time when the recession is causing problems for the economy. The fact that earnings news is improving apparently doesn’t provide enough of an incentive to change things.
The $200 billion proposal would have changed the way overseas profits would be taxed, resulting in higher taxes for large multinational companies doing business in other countries. …read more

Microsoft’s top executives earned less in annual pay and awards throughout the fiscal year 2009, the first year ever for Microsoft to have posted a decline in annual revenue. Despite the usual strength of Microsoft, the technology giant has found itself struggling under the weight of the sagging economy.
 
According to Microsoft, the fiscal year ended in June saw sales fall 3 percent to $58.4 billion, the company’s first-ever drop in revenue. In response to this, Microsoft has announced that it will reduce spending by $3 billion compared to its original fiscal 2009 spending plan, highlighting that Microsoft will take the …read more

Despite the fact that it exploded on to the scene and has become one of the most popular websites in the world, Twitter has still not managed to figure out its business model. A new deal that could get Twitter as much as $100 million, though, may give the website the time it needs to become profitable.
The funding would come from an investor group that includes mutual-fund giant T. Rowe Price Group Inc. and private-equity firm Insight Venture Partners, both of which have not yet invested any money into Twitter. Existing Twitter investors are also expected to participate in this …read more

The world of business has been a bit rocked by the recent recession. Many small businesses and home businesses have been especially hard hit. But, are you desperate enough to try The Bar? According to the video below, the world of The Bar provides an opportunity for you to create cash flow. It’s a business “opportunity” for you to make money using the Internet. Indeed, you can even set up your own business based on The Bar, getting people to work under you in “levels”. The more they make, and the more levels below you, the more you make. I …read more

Everyone likes a good profit story. And Intel is providing one. As the Dow and the S&P 500 head lower this morning, Intel has the Nasdaq hanging on in the black. Intel announced that its forecast for third-quarter revenue beats the Wall Street expectations. This is a sign that things are improving for the large chip maker, and it could mean that the technology sector is ready to move out of its slump.
Technology is one of those things hit hard by drops in consumer spending. When consumers are not confident about the economy, they often decide that technology projects are …read more

If you are flying internationally with American Airlines, you may consider packing lightly if you want to save $50. The company recently unveiled that it would add a $50 surcharge that passengers flying on certain international flights will have to pay if they check a second bag, while checking the first bag still remains free.
 
Passengers on transatlantic flights going from or through Belgium, France, Germany, Ireland, Spain, Switzerland, or India will be the only ones paying the bag fee. Even then, more specifications apply: only certain types of economy tickets, and never business or first class tickets, will incur the …read more

Videogame maker Electronic Arts sunk deeper into loss in its fiscal first quarter thanks to falling revenue, a situation brought on by EA’s taking deferred revenue into account. However, EA has also managed to do better than Wall Street expectations would have had the company doing thanks to the popularity of its Sims 3 game and various Wii titles.
 
According to EA’s CFO Eric Brown, the company is expecting to grow in the second half of the calendar year, especially in its digital services unit. He has expressed confidence in EA’s big-ticket products, stating that EA’s most important titles are selling …read more

HTC Corp., a Taiwanese handset maker, has released expectations that its revenue will drop this year due to delayed product launches, weak contract-order demand, and disappointing Chinese sales. Although it had once predicted a 10 percent increase in revenue, HTC now expects revenue to fall by a single-digit percentage amount.
 
Last year, HTC’s revenue increased 29 percent to US$ 4.65 billion, but growing competition on the part of companies like Motorola and Sony Ericcson, both in the process of incorporating Google’s Android operating systems into their handsets, has removed HTC’s biggest advantage.
 
HTC manufactures T-Mobile USA’s G1 phone, which makes use of …read more

Supplemental insurer Aflac Inc. has posted a 35 percent second-quarter drop in profits due to significant investment losses. Despite its steep drop in profits, Aflac plans to go forward with its acquisition of South Carolina-based Continental American Insurance, Co., a deal that will set Aflac back about $100 million.
Aflac’s second-quarter earnings are down from $483 million last year to $314 million this year, a total of 33 cents per share in losses. The results came alongside investment losses of 53 cents per share. Revenue has fallen 0.5 percent to $4.31 billion, while analysts predicted that Aflac would post $4.68 billion …read more