Liquidation in other words is nailing the coffin which contains the dead body of a business firm or organization.



The factors that contribute to liquidation of the company are

1Performance of the company

2Struggling economy

3Natural disaster

4Artificial disaster

5Illegal activity such as theft or fraud

6Hostile takeover

7state of the market at the time

8Technical advancement

Financial catastrophe of this kind forces the company to claim bankruptcy. This situation can compel the company to liquidate the whole company or a part of it. The above mentioned factors if studied properly can help us to fight liquidation.

Performance of the Company : The performance of the company depends on its management and the market scenario. The adverse market scenario could be because of stiff competition from another company also. The best way to assure better performance of the company is by effective and efficient management.

Struggling Economy : The Economy is said to be struggling when the inflation goes out of control and the businesses cannot survive the economic onslaught. The best example of this kind of struggling economy was seen in the post world war II era. Patience is the antidote for this situation.

Natural Disaster: Natural disasters like earthquakes, tsunami, and the hurricanes can bring havoc not only to the company but to the whole sate of country. When the company is razed to ground because of such calamity there is no other option but of liquidation. The company's assets should be insured.

Artificial disaster: Artificial disasters include war and terrorist attack. These sort of attacks could bring the infrastructure of the company to zero. Tight security is the only solution to this factor.

Illegal activity such as theft or fraud : When the company entertains illegal activities such as drug trafficking or manufacture of contra band goods legal action leads to closure of these sort of companies, ultimately to be liquidated. Strict application of rules and regulations is the precautionary measure in this situation.

Hostile takeover : Amalgamation and mergers are constantly changing the face of the corporate world. The incidence of buying of more than 50% shares from the market and taking the control of board of directors can lead to a hostile takeover. The company should keep a track of the movement of the shares especially when a large mass is being transferred.

Technical advancement : The technical advancement can ruin the local industry by bring down the unit cost of production . The country's rules and regulations pertaining to import and export should be positively biased for indigenous items and negatively biased for imported items .

The above mentioned issues relating to Liquidation are applicable to industries not only in Sydney but also worldwide. Major Exports Through Sydney include aluminum, iron ore, wool, wheat, machinery ,Coal, gold, meat, and transport equipment. Major countries with whom trade is conducted from Sydney include United States, Japan, Europe, China, United Kingdom, New Zealand, South Korea, and Taiwan. Major Industries of Sydney are manufacture of chemicals, steel, ,mining, food processing, transport and industrial equipment.

Looking at the present scenario is possible because of mismanagement of the company, hostile takeover, and last but not the least the technical advancements.