The Liquidation of ABC Learning: A Case Study in Corporate Failure

Accounting Financial ACC701
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Executive Summary
This report explains about the liquidation of ABC learning, Australia. There were various
reasons due to which the company was led to liquidate. The analysis of the company has been
done to evaluate the factors which led to the liquidation of the organization. With that the ethical
and governance factors are also highlighted by explaining the financial stress of ABC Learning.
The liability was not only the factor in the organization which led to the liquidation of the
organization but there were many other factors such as the prices of the product and its
expansion. These all factors equally contributed to liquidate the ABC Learning. The collapse of
the companies was incorporated with various deficiencies which are related to the weaknesses of
the internal control, quality of auditing, strategic mistakes and the policies of pricing. There were
various financial troubles that were faced by the ABC Learning while providing the childcare
services in all over the world.
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Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Events that led up to the liquidation............................................................................................................5
Ethics and governance in explaining company’s financial stress.................................................................6
Were liabilities a major factor in contributing to the liquidation of the company?......................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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