Table of ContentsDiscussions:ABC Learning Company:Liquidation Events:HIH Insurance Company:Liquidation Events:One.Tel Phone Company:Liquidation Events:Ethics and Governance of Corporate Financial Stress :For ABC Learning: For HIH insurance:For One.Tel Phone Company:Impacts of liabilities in case of liquidation of companies:Conclusion:REFERENCES:In general, when a company is not able to meet its short-term obligations and others and becomes insolvent, the best way to achieve this is liquidation or liquidation. Through liquidation, the disposition of the company's assets with a view to paying liabilities. By using this procedure, the creditors of such a company recover part of their debts. Say no to plagiarism. Get a tailor-made essay on 'Why violent video games should not be banned'?Get the original essayAustralia is considered one of the fastest growing countries in terms of its financial situation, although recent Over the years, Australia's business sector has seen many industries fail. The main reason for such collapse or liquidation is insolvency, due to unfavorable market conditions, low profit ratios or high debt ratios which have made the company unable to make face its obligations towards its creditors. Some of these companies are like ABC Learning Corporations, HIH Insurance and One.Tel Phone Company etc. This report presents the reason for the collapse of Australian companies ABC Learning, HIH Insurance and One.Tel Phone Company, and the report will include the discussion. on business ethics and governance as it relates to financial ownership of the company. Ethical issues are the most important factors for organizations as they impact overall business activities in order to maintain sustainable growth (Crane, 2019). Discussions: ABC Learning Company: ABC Learning Corporation was founded by Eddy Groves and his wife Le Neve in the year 1988 in Australia. In previous years, it had almost 697 centers and was named as the largest daycare operator in 2005. The company in 2004-2005 made almost 2.7 million in revenue and up to 0.3 million in net profits, but this company was liquidated in 2005. the year 2008 (Splash, 2019).Liquidation Events: According to reports, the company went into liquidation in 2008 after selling about 60% of its business to Morgan Stanley with the aim of repaying the debt accumulated around rdaddphp.5 million. In 2007, the organization faced a 42% drop in profits and ultimately failed to fulfill its obligations in the amount of $8 billion, which led to a considerable drop in market share price . Due to non-payment of creditors and inability to make sufficient profits in the financial year 2007-2008, the share price of this company was restricted. HIH Insurance Company: This company was founded in 1968 by Ray Williams, which was named as the second largest insurance company in Australia and was operated in several geographical territories like the United States, Asia, United Kingdom and several other regions, with total assets of almost 27 in 2000. But for obvious reasons, the company went into liquidation in 2001 under a plan of arrangement (Splash, 2019). Liquidation Events: This company goes into provisional liquidation proceedings accompanying its group companies and subsidiaries in 2001. This was considered one of the biggest collapses in Australia with a loss of almost 0.3 billion. According to the report, the Net company wasaccused of several fraudulent ways and some of its members are also accused of imprisonment. In 2000-2001, the company faced a considerable decrease in its net assets, estimated from billions to 3 million. It was also found that a slight change of 1.7% in assets could lead to deficiencies in the financial position of the company. According to the official liquidator's report,The loss suffered by the company in 2000 was around 0 million and this was the main reason for the collapse of this company. One.Tel Phone Company: It is an Australia-based telecommunications company established in 1995. It has been notified as the fourth largest company in the telecommunications industry using the 3GSM 1800 network system for its operations. The company had a strong customer base of around 2.2 million and a revenue of almost 3 million between the periods 1998-2000 (Splash, 2019). Liquidation Events: Due to huge losses of around 1 million, this telecom company collapsed in the year 2001 and its stock price fell below rdaddphp. The company has also faced some circumstances problems at the time when it is in a situation of huge financial losses. Therefore, the company only sold its shares for file=php/clean_code.php.5 million and went into liquidation in 2001 due to huge losses and insolvency. There are various reasons for the liquidation of a business, but the most obvious reason is the inability to repay creditors. Sometimes, many organizations can collapse after achieving their main goals. The main reason behind the liquidation of the three companies mentioned above was financial distress, which resulted in huge losses and a decline in stock prices. Ethics and Governance of Business Financial Stress: Ethics and governance are considered the most important and essential factors in running an organization smoothly and safely. Ethics and morality are the values ​​that the organization must exercise to function properly and to make decisions regarding profit maximization and sustainable growth. While governance is used to establish rules and procedures to manage business policies and activities as well as legal standards. To carry out the business function safely, correctly and ethically, several governing bodies and committees are formed. This ethics and governance play an important role in the case of maintaining financial information related to revenues, liabilities, expenses and capital employed. For ABC Learning: In 2008, the company faced a huge financial loss and was unable to make payment to its creditors and thus resulted in the liquidation situation of the company. The company faced a profit loss of 42% in fiscal 2007 due to poor management and governance issues in business operations. Its stock price has fallen to rdaddphp.15 since 2008. One of the main reasons for this collapse was the inability to build a strong and efficient business model, as required in financial business. The company must maintain accounting standards and principles by disclosing the company's tangible and intangible assets according to their value, even the company's auditors presented an opinion on an unqualified report on the financial statements which had many problems accountants. It was the responsibility of management to maintain proper principles and principles. regulations for maintaining financial statements. AllFinancial transactions and reports must be properly disclosed in financial statements, but ABC Learning failed to maintain this disclosure principle. The organization does not properly disclose the fair value of its assets and the amount of its net profits, in other words, the company does not disclose transparency in case of maintaining financial statements. The company discloses in its financial statements goodwill valued at 7 million for 2007-2008, although it shows that the impairment charges amount to file=php/clean_code.php only. It can therefore be concluded that the company did not comply with ethical rules when preparing accounting data for related parties. Governance is one of the important factors that have a significant impact on business growth. It is necessary for every company to maintain governance policies while carrying out its functions. However, ABC learning did not maintain such policies in case of business performance, even though they classified current liabilities as non-current liabilities (Splash, 2019). For HIH Insurance: Lack of ethical manner and governance in business, resulting in huge gaps in company profitability. . Due to a loss of $3 billion in the financial accounts for the 2000-2001 financial year, the company went into liquidation. The main reason for this loss is the lack of respect for primary governance and ethics policies. The company even faced many difficulties in a competitive market situation while executing its operations. As per governance policies, business activities must be reported at fair value, but the company has not been able to maintain such policies. Similarly, the company also fails to maintain ethical standards by implementing fair accounting practices. The company is also exhibiting unethical practices by disclosing the value of its assets at a lower value and providing false information to stakeholders, some bad practices regarding investment and dividend policies, etc. These are considered to be one of the main reasons for the collapse of organizations (Splash, 2019).For One.Tel Phone Company: There were certain ethical issues related to the One Tel Phone company. The ethical issues were related to unethical practices used by the company in cases of creative accounting and insider trading. The company had a conflict of interest between EY and a telephone company Tel and between its own interests and its personal ego, creating problems. It could also be seen that there was no personal and professional quality of integrity and independence within the organization. The company suffered from ethical problems because it had an allowance for bad debts close to 38%. It also underestimated bad debts. The company created ethical problems in terms of returning money from abroad in order to conceal its own financial information. When it comes to the corporate governance of the company, it can be seen that Tel telephone company had a very poor board structure. Most investors failed to take an interest in the management of the company. There was also a very poor reward system as well as poor customer management. The company failed to use a principles-based approach. There was also a lack of framework and corporate rules and regulations, which led to poor governance of a Tel company (Splash, 2019). Impacts of responsibilities in the event of liquidation ofthe company: when carrying out accounting transactions, the company must also follow ethical rules. as governance policies. Normally, an organization goes into liquidation when it is unable to properly pay its debts to creditors and certain other short-term debts and is considered insolvent. As a final solution regarding payment to creditors, company liquidation procedures are resolved. Therefore, liabilities have a great impact on liquidations. For ABC Learning: In 2008, the company went into liquidation because it was unable to pay the amount owed to creditors due to lack of profits in that financial year. Even the stock prices of companies also fell that year. Thus, non-payment of the liability amount has a strong impact on the liquidation of ABC Learning. For HIH Insurance: This company went through liquidation proceedings in 2001 when it was revealed that the company was involved in many unethical ways regarding the financial situation. and also to maintain governance policies. The company does not make all the payments necessary for its continuation. Thus, non-payment of liability amount had a great impact on the liquidation of companies. For One.Tel Phone company: Due to huge losses of around 1 million, this company went bankrupt in 2001. The company also faced some circumstances intervene at the time it is in a situation of huge financial losses . Thus, the company went into liquidation in 2001 due to huge losses and insolvency, due to this the company was not able to pay its debts and these pushed the company to the brink of collapse. liquidation. Conclusion: The report can conclude that liquidation of a company results not only from non-payment of liability amount but also from non-compliance with certain ethical rules and governance policies relevant to business operations. If the organization is not able to maintain ethics and honesty in carrying out its operations, it will not be able to survive in the long run. For every organization, it is essential to follow proper accounting principles and regulations while carrying out its operations, otherwise it would go to the extent of liquidation due to unethical issues. Keep in mind: this is just a sample. Get a custom document now from our expert writers. Get Custom Essay In the above report, three selected companies faced liquidation situation due to non-payment of debts and also lack of profits. This led to a decline in stock prices in the market. Along with this lack of profit, another important factor that influenced the company's liquidation involves unethical issues, such as non-disclosure of a true and fair view of financial statements. Moreover, due to these reasons, the company faced financial collapse and liquidation. REFERENCES: Bell, E., Bryman, A. and Harley, B., 2018. Business Research Methods. Oxford University Press. Berger, A.N., Imbierowicz, B. and Rauch, C., 2016. The roles of corporate governance in bank failures during the recent financial crisis. Journal of Money, Credit and Banking, 48(4), pp.729-770. Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business Ethics: Managing Corporate Citizenship business and sustainability in the era of globalization. Oxford University Press. Emmermann, K. and Boey, MY, 2015. Reorganization and restructuring of insolvent companies in Germany: a step towards Chapter 11?. American, 1.