Calculating Torque With Examples

When studying how objects rotate, it quickly becomes necessary to figure out how a given force results in a change in the rotational motion. The tendency of a force to cause or change rotational motion is called torque, and its one of the most important concepts to understand in resolving rotational motion situations. The Meaning of Torque Torque (also called moment — mostly by engineers) is calculated by multiplying force and distance. The SI units of torque are newton-meters, or N*m (even though these units are the same as Joules, torque isnt work or energy, so should just be newton-meters). In calculations, torque is represented by the Greek letter tau: Ï„. Torque is a vector quantity, meaning it has both a direction and a magnitude. This is honestly one of the trickiest parts of working with torque because it is calculated using a vector product, which means you have to apply the right-hand rule. In this case, take your right hand and curl the fingers of your hand in the direction of rotation caused by the force. The thumb of your right hand now points in the direction of the torque vector. (This can occasionally feel slightly silly, as youre holding your hand up and pantomiming in order to figure out the result of a mathematical equation, but its the best way to visualize the direction of the vector.) The vector formula that yields the torque vector Ï„ is: Ï„ r Ãâ€" F The vector r is the position vector with respect to an origin on the axis of rotation (This axis is the Ï„ on the graphic). This is a vector with a magnitude of the distance from where the force is applied to the axis of rotation. It points from the axis of rotation toward the point where the force is applied. The magnitude of the vector is calculated based upon ÃŽ ¸, which is the angle difference between r and F, using the formula: Ï„ rFsin(ÃŽ ¸) Special Cases of Torque A couple of key points about the above equation, with some benchmark values of ÃŽ ¸: ÃŽ ¸ 0 ° (or 0 radians) - The force vector is pointing out in the same direction as r. As you might guess, this is a situation where the force will not cause any rotation around the axis ... and the mathematics bears this out. Since sin(0) 0, this situation results in Ï„ 0.ÃŽ ¸ 180 ° (or Ï€ radians) - This is a situation where the force vector points directly into r. Again, shoving toward the axis of rotation isnt going to cause any rotation either and, once again, the mathematics supports this intuition. Since sin(180 °) 0, the value of the torque is once again Ï„ 0.ÃŽ ¸ 90 ° (or Ï€/2 radians) - Here, the force vector is perpendicular to the position vector. This seems like the most effective way that you could push on the object to get an increase in rotation, but does the mathematics support this? Well, sin(90 °) 1, which is the maximum value that the sine function can reach, yielding a result of Ï„ rF. In other words, a force applied at any other angle would provide less torque than when it is applied at 90 degrees.The same argument as above applies to cases of ÃŽ ¸ -90 ° (or -Ï€/2 radians), but with a value of sin(-90 °) -1 resulting in the maximum torque in the opposite direction. Torque Example Lets consider an example where youre applying a vertical force downward, such as when trying to loosen the lug nuts on a flat tire by stepping on the lug wrench. In this situation, the ideal situation is to have the lug wrench perfectly horizontal, so that you can step on the end of it and get the maximum torque. Unfortunately, that doesnt work. Instead, the lug wrench fits onto the lug nuts so that it is at a 15% incline to the horizontal. The lug wrench is 0.60 m long until the end, where you apply your full weight of 900 N. What is the magnitude of the torque? What about direction?: Applying the lefty-loosey, righty-tighty rule, you will want to have the lug nut rotating to the left - counter-clockwise - in order to loosen it. Using your right hand and curling your fingers in the counter-clockwise direction, the thumb sticks out. So the direction of the torque is away from the tires ... which is also direction you want the lug nuts to ultimately go. To begin calculating the value of the torque, you have to realize that theres a slightly misleading point in the above set-up. (This is a common problem in these situations.) Note that the 15% mentioned above is the incline from the horizontal, but thats not the angle ÃŽ ¸. The angle between r and F has to be calculated. Theres a 15 ° incline from the horizontal plus a 90 ° distance from the horizontal to the downward force vector, resulting in a total of 105 ° as the value of ÃŽ ¸. Thats the only variable that requires set-up, so with that in place we just assign the other variable values: ÃŽ ¸ 105 °r 0.60 mF 900 N Ï„ rF sin(ÃŽ ¸) (0.60 m)(900 N)sin(105 °) 540 Ãâ€" 0.097 Nm 520 Nm Note that the above answer involved maintaining only two significant figures, so it is rounded. Torque and Angular Acceleration The above equations are particularly helpful when there is a single known force acting on an object, but there are many situations where a rotation can be caused by a force that cannot easily be measured (or perhaps many such forces). Here, the torque often isnt calculated directly, but can instead be calculated in reference to the total angular acceleration, ÃŽ ±, that the object undergoes. This relationship is given by the following equation: ÃŽ £Ãâ€ž - The net sum of all torque acting on the objectI - the moment of inertia, which represents the objects resistance to a change in angular velocityÃŽ ± - angular acceleration

College essay topics to write about Effective Communication - Free Essay Example

Sample details Pages: 8 Words: 2362 Downloads: 7 Date added: 2017/06/26 Category Management Essay Type Research paper Did you like this example? Introduction It is not unusual for employees to approach organisational change with the mentality they inherited from their social-cultural environment. The impetus for instant change is not obvious at all. Behavioural change does not happen because it is suggested, recommended, or enforced by a manager (or anyone else). Don’t waste time! Our writers will create an original "College essay topics to write about Effective Communication" essay for you Create order Change happens because one sees value and personal benefit in making the change. As a result, it is imperative that change agents understand the power they exert in attempting to implement organisational change initiatives. Change agents are catalysts for workplace behavior modification. They devise motivational plans that trigger the inspiration for employees to follow agent directives. Hence, it is not enough for management teams to think of change in terms of organizational requirements. Managers who seek the expertise of change agents are wise in so doing. Expert change agents are knowledgeable in understanding potential road blocks that inhibit employees from making the necessary adaptations to new initiatives. Social and cultural environments contribute towards the complexity of behavior modification. This paper presents a transformation initiative whereby the change agents utilise effective communication as a tool to create a vision and the credibility necessary to inspire vol untary participation in behavioural change. Creating Vision and Credibility Through Effective Communication Effective communication is instrumental to the success of organisation change initiatives. When done intentionally well the emotional rewards are satisfactory. But, when it fails to impart the messages necessary to complete projects the results can be catastrophic (Hunt, 2014). Misunderstandings, antipathy, and a host of other negative emotions could seriously damage business relationships. Good communication contributes towards operational and process efficiencies (Hunt, 2014). Therefore, it follows that the value of using effective communication as a tool can never be over-emphasised or underrated for the impact it makes on successful outcomes. This paper presents the communication process undertaken by a primary change agent with a twenty manager team. The goal is to develop a change management plan that transitions the organisation from a traditional work-group to a team-based culture. Discussions include the channels of communication, traditional work-groups versus team bas ed organisations, the role of the primary change agent, the communication team, assumptions made, the transition process, change initiative communication, team credibility, faith creation, and answering tough questions. The paper concludes with a recapitulation of the content. Traditional Working Groups Versus Team Based Organisations This section distinguishes working groups from team-based organisations. They do not function in the same capacity, hence, the necessity to differentiate them here. Traditional working groups (WG) within organisations function independently. Examples of traditional WGs are accounting and human resource departments or new product divisions. These departments work independent of each other. Work is individualised (Zaharia, Dogaru, Boaja, 2014). In contrast, team-based organisations focus on different skills and competencies that come together to meet a common goal. Teams are not limited to functional requirements. Teams use a cross-functional composition to work in a common goal scenario. Individuals do not function independent of the group goals. Everyone working together achieve the goal (Zaharia, Dogaru, Boaja, 2014). Primary Change Agent Leadership Role Buono and Subbiah (2014) suggest that primary change agents (PCA) are effective to the extent that they understand the cultural environment, are able to identify influential key players, and possess the ability to provide mentorship, as well as, positive role modeling. Buono and Subbiah (2014) suggest further that PCAS are influencers. They motivate and inspire change in others. Additionally, PCAS have internal systems knowledge and can troubleshoot problems as they arise. Buono and Subbiah (2014) propose an example of PCA as someone who is able to identify subtle disturbances that could potentially interfere with change processes. A manager who is perceptive, tactful, and diplomatic is considered an effective PCA. Another example is a manager who understands the business and how it acquires revenue from beginning to end. Still another example is a manager who can create partnerships and alliances throughout the organisation (Tan Kaufman, 2015). The Communication Team Lira, Ripoll, PeirÃÆ' ³, and Zornoza (2013) suggest that team popularity has increased within the past decade. They assert further that teams are effective only to the extent that they can complete project related tasks on time using various modern day technologies, such as, social networks, and computerised mediums. Teams must become efficient in developing effective interpersonal relationships. Lira et al. (2013) recommend that Human Resources facilitate ongoing leadership development training to increase group efficacy and competency. The communication team serves to facilitate the interactions between management and the workforce. Their plans will include educatory processes that will help the workforce make sense of the transition process. Bolman and Deal (2008) advise on the complexity of organisation change and the ambiguities that are ever present in the communicative process. They recommend that the managers reflect upon their images to become aware of potential erro neous perspectives. They encourage managers to be intuitive and consider that failure is one component of success. Context Assumptions Presented here are the assumptions made concerning the PCA. The PCA is experienced in matters of effective organisational change. The PCA understands the communication process. The PCA is competent in leadership roles. Finally, the PCA is very well versed in team dynamics and organisation political processes. The following assumptions are made within the context of the subject matter contained herein: the Organisation Change Team (OCT; twenty managers) assigned to this project is positive and enthusiastic about this change initiative. They exude a spirit of participation with proactive attitudes. They view this project from a servant leadership perspective. They expect challenges and understand that every project has unforeseen circumstances that must be addressed ad-hoc (Kotter Cohen, 2002). Transitioning To A Team-Based Environment Transitioning the cultural environment from that of a working group to a team-based one requires the acknowledgement and acceptance that the external environment has forever changed the way organisations learn new skills (Katzenbach Smith, 2003). Empirical research on team transition from traditional work groups to teams is lacking. The general consensus is that change is necessary, but implementing a change initiative is challenging. Gardner (2009) suggests that employee resistance and lack of management support top the list of reasons for project failures. Bolman and Deal (2008) discuss the importance of providing opportunities to learn about emotional intelligence. Emotional intelligence as it has been presented by Goleman (1995) indicates the importance of empathy and acknowledging the emotions of others. Goleman posits that emotional intelligence has greater significance than does intellectual abilities. Showing compassion and empathy is instrumental in employee engagement processes (Goleman, 1995). Idris, Dollard, and Tuckey (2015) propose that organisations can do much in terms of contributing towards employee well-being. They suggest that employers create environments conducive to learning opportunities. Idris et al. (2015) found a strong correlation between safe psychosocial environments and job satisfaction. Idris et al. (2015) suggest that employees who feel intellectually stimulated are more likely to exude stronger intrinsic motivation stimulus. Such stimulus becomes the driving force that creates inspiration to participate in the change initiative. Change Initiative Communication Plan Presentation Style Nawar (2012) recommends the use of symbols as a form of visual education (p. 61) with the goal to communicate a message in the absence of language. However, the visual elements (photos, videos, and symbols) cannot replace (and should not be used to replace) the verbal component of the communication process. Visuals used in conjunction with language enhance the comprehension process. Nawar (2012) proposes that audio-visual presentations increase understanding of the subject content. As a result, the leadership team will add video content to their presentations. The suggested theme for the videos will be called Excite Your Senses Go Ahead and Make the Change! using the Monarch Butterfly as a symbol of transformation. According to the USDA Forest Services, Monarch butterflies are the only butterflies to survive the challenges of migration twice per year (Migration, nd). The objective of this approach is to help set the stage for understanding the challenges that come with change ( Kotter Cohen, 2002). Channels Of Communication Berger and Iyengar (2013) suggest that communication in modern day society is multidimensional because of the multiple modalities used to transmit messages. There are social network mediums (Facebook, Twitter, Instagram and others). There are many email exchanges (Hotmail, Gmail, Yahoo, and others). There are interactive networks, such as, Tango and Skype. Finally, there is face-to-face interactions. Berger and Iyengar (2013) studied the various ways in which one message can be constructed using different platforms. They found that written messages provided greater opportunity to improve the communication process because more time is required to write than it is to talk. The studies also showed that conversations contributed to the acceptance of referrals and recommendations. Given the results of the aforementioned research, it follows that the potential of employees voluntarily engaging in behavioural changes increase when managers engage them in conversations as opposed to sen ding out memos via emails. Medlin and Green (2014) support the concept that effective management increases the prospect that employees will voluntarily commit their time and intellectual resources for the benefit of the organisation. They conducted a study to propose that positive management interaction with employees resulted in improved performance. They found that employees who felt valued and appreciated were both effective and efficient. One principle that Medlin and Green (2014) found that contributed to increased production was unity of clarity (p.27). This principle aligns with the channels of communication to ensure that effective communication between the management team and employees produce results. Team Credibility Vigliotti and Gregory (2013) propose that managers establish credibility by aspiring to become active, show competence, and demonstrate respect towards others. Managers must create safe environments by maintaining open communication processes. They should be approachable, honest, and of high integrity. They must demonstrate superior active listening skills. Clarity and simplicity are synonymous (Kotter Cohen, 2002). Additionally, creativity, authenticity, and credibility precede message crafting (Hatfield, 2012). Hatfield (2012) suggests further that messages must arouse emotional energy if they are to have any effect on the intended audience. Hence, it is imperative that managers dedicate significant time towards drafting their vision statement. The articulated vision must inspire intrinsic motivation in the employees or the risk of failure to engage the workforce becomes imminent (Kotter Cohen, 2002; Hatfield, 2012). Creating Faith in The Change Effort LaFasto and Larson (2001) assert that faith in the change effort is created when management practices demonstrate clarity, confidence, and commitment. Empowering teams to make decisions that implement changes faster also creates faith. Management shows faith when they believe that the teams are equipped to handle challenges that arise. Finally, establishing a culture of constant accountability and excellence conation sends a strong message of trust and belief throughout the organisation (LaFasto Larson, 2001; Kotter Cohen, 2002; Hatfield, 2012). Answering Tough Questions Kotter and Cohen (2003) suggest that all change efforts engender questions intended to alleviate anxiety. Management can and should prepare answers for the tough questions. However, the best practice in answering questions comes from being sincere and honest. Fusco, ORiordan and Palmer (2015) encourage leaders to remain authentic. Managers can do this by expressing a strong sense of self-awareness and confidence by way of their actions. Open communication, information sharing, and honesty in ones interpersonal relations increase the possibility that the tough questions will be perceived as inquisitive and welcomed.. Jones (2013) advises managers to refrain from distorting or manipulating the facts of impending changes if they intend to gain the trust and respect of their employees. Conclusion This paper introduced an organisation change initiative that involved the transitioning from a traditional work-group to a modern day team-based culture. Discussions involved the transition process, the role of the primary change agent, the communication team, change initiative communication plan, team credibility, creating faith in the change effort, and answering tough questions. Context assumptions were made to provide the understanding that major change initiatives cannot be undertaken by inexperienced managers. References Berger, J., Iyengar, R. (2013). Communication channels and word of mouth: How the medium shapes the message. Journal Of Consumer Research, 40(3), 567-579. doi:10.1086/671345. Bolman, L. G. Deal, T. E. (2008). Reframing organizations Fourth edition. Jossey-Bass, San Francisco, CA. Buono, A. F., Subbiah, K. (2014). Internal Consultants as Change Agents: Roles, Responsibilities and Organizational Change Capacity. Organization Development Journal, 32(2), 35-53. Fusco, T., ORiordan, S., Palmer, S. (2015). Authentic Leaders are Conscious, Competent, Confident, and Congruent: A Grounded Theory of Group Coaching and Authentic Leadership Development. International Coaching Psychology Review, 10(2), 131-148. Gardner, P. J. (2009). Organizational change: All we want is better projectsà ¢Ã¢â€š ¬Ã¢â‚¬ why so difficult? AACE International Transactions. 3.1-3.25. Goleman, D. (2015). Emotional intelligence. Retrieved from https://www.danielgoleman.info/topics/emotional-intelli gence/ Hatfield, C. (2012). Crafting your story using personal narrative. Training Journal, 45-47. Hunt, K. (2014). Communicating with the practice team. Practice Nurse, 44(10), 36-40. Idris, M. A., Dollard, M. F., Tuckey, M. R. (2015). Psychosocial safety climate as a management tool for employee engagement and performance: A multilevel analysis. International Journal of Stress Management 22(2), 183-206. https://dx.doi.org/10.1037/a0038986 Jones, R. (2013). Never stop learning and never stop asking tough questions. Public Relations Tactics, 20(9), 17. Katzenbach, J. R. Smith, D. K. (2003). The wisdom of teams. New York, NY: Harper Collins Publishers. Kotter, J. P. Cohen, D. S. (2002). The heart of change: Real-life stories of how people change their organizations. Boston, MA: Harvard Business School Press. LaFasto, F. Larson, C. (2001). When teams work best. Sage Publications Inc., Thousand Oaks, CA. Lira, E. M., Ripoll, P., PeirÃÆ' ³, J. M., Zornoza , A. M. (2013). The role of information and communication technologies in the relationship between group potency and group maintenance outcomes: a longitudinal study. Behaviour Information Technology, 32(2), 147-155. doi:10.1080/0144929X.2011.630421. Medlin, B. Green, K. W. (2014). Impact of management basics on employee engagement. Academy of Strategic Management Journal, 13(2), 21-35. Migration and overwintering (nd). USDA Forest Service. Retrieved from https://www.fs.fed.us/wildflowers/pollinators/Monarch_Butterfly/migration/index.shtml Nawar, H. (2012). Multicultural transposition: From alphabets to pictographs, towards semantographic communication. Technoetic Arts: A Journal Of Speculative Research, 10(1), 59-68. doi:10.1386/tear.10.1.59_1. Tan, A. Kaufman, U. H. (2015). Making good change agents: Attitude, knowledge, skills. Retrieved from https://www.isixsigma.com/implementation/change-management-implementation/making-good-change-agents-attitude-knowledge-skill s/ Vigliotti, D., Gregory, J. L. (2013). Review of Credibility: How leaders gain and lose it, why people demand it (2nd ed.). Journal Of Leadership Studies, 7(2), 62-63. doi:10.1002/jls.21283. Zaharia, V., Dogaru, M., Boaja, D. (2014). Working group versus team work. Knowledge Horizons.Economics, 6(4), 146-149. Retrieved from https://search.proquest.com/docview/1669

The Road Not Taken By Robert Frost - 1297 Words

The most famous poems are popular because of their versatility – the ones whose messages are valid beyond their era. Of course, our personal experiences shape the way we perceive things, which is why one artwork can have multiple different interpretations. Though there may not be any singular correct meaning, having contextual knowledge of a poem certainly helps us understand the thoughts and feelings that inspired the poet at the time. The poem I’ll be unveiling is â€Å"The Road Not Taken† by Robert Frost, one of the most well-known poets of the modern literature movement. He lived most of his life in America but moved to the UK a few years before World War 1. (Schmoop, 2008). Frost is known for pioneering the idea that poetry deserves to be spoken out loud, using rhythm and meter, giving his work a traditional ambiance. The title ‘The Road Not Taken’ suggests there is no â€Å"right† path, only the chosen path and the other path. It will always be the path â€Å"not taken† and hold the mysterious unknown – always leaving the speaker wondering what has been irrevocably lost. The poem explores making choices and the theme of individualism. The purpose of the poem was to provide assurance that there will never be a right or wrong choice. To understand these ideas further, we must open the doors to Robert Frost’s life and what, or in this case who, inspired his poem. -- Frost lived with his family in the countryside of Great Britain from 1912 to 1915. (Orr, 2015). Half a mile away livedShow MoreRelatedThe Road Not Taken By Robert Frost983 Words   |  4 PagesThe poem â€Å"The Road Not Taken was written by Robert Frost, a four-time Pulitzer Prize winner in poetry, and also a special guest at President John F. Kennedy’s inauguration (Robert Frost Biography). Frost was born on March 26, 1874 in San Francisco, California and he died of complications from prostate surgery on January 29, 1963. Much of Robert’s popularity was gained throughout Europe (An Analysis of Robert Frost’s Poem: The Road Not Taken). Frost became a poetic force, and the unofficial poetRead MoreThe Road Not Taken by Robert Frost764 Words   |  3 PagesWritten by Robert Frost, â€Å"The Road Not Taken† deals with about making choices in life and how those choices affect your whole life. The meter of this poem is iambic tetrameter, for the most part. In most lines, the meter follows the rule with four iambs, which means that there is one unstressed syllable followed by a stressed syllable. But the meter is not normal since, in some lines, an anapest, which means there are two unstressed syllables followed by one stressed syllable, is substituted forRead MoreThe Road Not Taken By Robert Frost1173 Words   |  5 PagesRobert Frost, one of America’s well-known poets is highly regarded for his realistic illustrations of rural life and poetry which is still relevant in today’s society. After being honoured on numerous occasions, he became one of America’s most popular public figures. Frosts’ poems reflect his greatness and his life in a variety of ways after he was confronted with such despair and grief after the passing of his father due to tuberculosis at just eleven years of age and his mother who passed awayRead MoreThe Road Not Taken By Robert Frost995 Words   |  4 Pagesthey can only move forwar d hoping for the best. â€Å"The Road Not Taken†, Robert Frost, 1916. In â€Å"The Road Not Taken† a traveler is strolling through the woods and comes across two different roads he could take, and unable to travel both the poet eventually chooses which path to take. The theme conveyed is about making choices. Frost does this through the use of diction, the use of figure of speech, and the use of imagery. To start with, Frost displays the main idea of decision making by the wordsRead MoreThe Road Not Taken By Robert Frost1055 Words   |  5 Pagesago. Either way, if you admit it now or in the wee hours of the night, like most people, you will come across this question at least once in your life. Robert Frost was able to grasp this raw, vulnerable life changing moment in the palm of his hand. Then he beautifully laid it out in the form of words in the narrative poem â€Å"The Road Not Taken†. Frost is able to take you back to a time when you have been faced with a life-changing decision. Then, causing you to ask yourself â€Å"Did I make the right choiceRead MoreThe Road Not Taken By Robert Frost940 Words   |  4 Pagesâ€Å"The Road Not Taken† was written by Robert Frost in 1916, and it was the first poem in the collection Mountain Interval (Shmoop). Even though it was written many years ago, people of all ages still study this enticing poem. Frost wrote about coming to a fork in the woods and examining which path he should take and whether he might ever come back; the speaker believes each path is fine to take, but he takes the less used path (line 6). He wrote about this decision in clear, standard English. â€Å"TheRead MoreThe Road Not Taken By Robert Frost863 Words   |  4 PagesThe Poem, â€Å"The Road Not Taken†, by Robert Frost is a detailed poem about a conflict in a person’s life, dealing with having to take the right path throughout life. The Narrator of this poem is faced with a predicament when he comes across two paths. The choices that he makes in his life, can alter the future for better or worse. This poem describes his attitude and emotion towards his choices as well as, shows examples of themes, mood, and different literary devices. The title of this poem canRead MoreThe Road Not Taken, By Robert Frost968 Words   |  4 PagesPersonal Response 3 Title: The Road Not Taken Text Type: Poem Author: Robert Frost The poem, ‘The Road Not Taken’ by Robert Frost is about the â€Å"roads† and different paths we take in our lives. Frost wrote about a traveler who had to chose between two roads. He had to decide if he wanted to go down the well used or less used path. In the end, he went down the less used path. The theme of decision making and choices is shown in this poem. I think that this is a way of describing the choices we makeRead MoreRoad Not Taken, Robert Frost942 Words   |  4 PagesEnglish 101 Burstrem October 7, 2009 The Road Not Taken Life is full of choices and decisions that could ultimately change the outcome of our lives. In the poem, â€Å"The Road Not Taken† by Robert Frost, a traveler is destined to make that decision. This traveler man has to decide which road to take, one that is frequently traveled, and the one that is not. After contemplating which road to follow, he comes to the decision to take the road less traveled because he doesn’t want to follow inRead MoreThe Road Not Taken By Robert Frost1100 Words   |  5 PagesRobert Frost reflects that poetry â€Å"begins in delight and ends in wisdom†¦.It runs a course of lucky events , and ends in a clarification of life—not necessarily a great clarification, such as sects and cults are found on, but in a momentary stay against confusion† (931). His poem â€Å"The Road Not Taken† is a clarification of life. This paper will analyze and evaluate the formal elements of â€Å"The Road Not Taken† and consid er how these elements work together to fit the author’s purpose and clarification

Director Shareholder Liabilities Insolvency â€Myassignmenthelp.Com

Question: Discuss About The Director Shareholder Liabilities Insolvency? Answer: Introduction Solvency is referred as the abilities of an organization or its members for paying out all their debts that are due as well as unpaid till the date mentioned under section 95 A(1) of the Corporations Act 2001. Here, the value of assets is always higher than that of liabilities, which indicates that dues can be easily payable by the solvent organization. However, in section 95A(2) of the Corporations Act, a person unable to pay the dues or debts on time is termed as an insolvent and the situation is known as insolvency. Here, the situation is completely vice-versa, where liabilities exceed the assets in an organization (Australian Institute of Company Directors, 2012). Additionally, liquidation of a company means winding up, the last step taken into consideration in case the debt amount is left unpaid. Here, the assets are sold at a discounted rate to recover the due amount leading to company disclosure (ASIC, 2017; Australian Institute of Company Directors, 2012). The paper explores diverse concepts related to insolvency and its impact in Australia. Management, Australian Securities Investment Commission (ASIC)s role in insolvency issues are analyzed within real life situations, which finally helps in the accomplishment of the paper objective. Signs of Insolvency along with Required Actions of the Directors Warning signs related to the insolvency risks are situations in business, which indicates the inability to pay off debts. Few of the signs are inability to pay the due taxes, where the organization starts ignoring the tax payments because they are bound to pay wages of the employees, supplier along with creditor demands. Usage of superannuation contribution of the employees for trading, experiencing continuing losses along with reduced cash flow as well as receiving legal notices on behalf of the creditors are few signs that push the business towards insolvency. For instance, if an organization does not pay the creditors on due date of 25-30 days, suppliers will further push them to pay or demand Cash on delivery for the next orders. Therefore, credit supply will be over, which will badly affect the already unbalanced cash flow (BTSA, 2017) Some additional signs include inadequate amount of sales along with lack in sales forecast and increased in the account receivable with the passa ge of time, thereby relying on obtaining finance or loans at high interest rates. Besides, financial records stay incomplete while the organization is found to be incapable of selling any further stock as stock turnover is quite low. All these signs align with the causes of insolvency of an organization (BTSA, 2017a). Directors need to understand the application of five rules to handle the insolvent situation in an organization starting with avoiding the resistance to acknowledge as well as to display pro-activeness by acting quickly and as early as possible. Additionally, the directors should look for adopting vigorous standards, where monitoring will be improved by considering the assets, liabilities, cash flows and bank facilities of the organization. The board of directors must further seek financial along with legal advice for developing alternative plan, when the existing plan is about to fail. At such instances, they can inject fresh funds to overcome the situations of financial difficulties. Moreover, directors should ensure that the banks are informed and engaged in the complex situations, where possibilities of short term loans may be provided to their organization for restructure and for turning-around the situation. The turnaround as well as restructuring strategies will take time and therefore directors need to keep patience and ensure engagement of stakeholders for its successful implementation (Corrs, 2017). The Potential Liabilities of Company Directors When a Company becomes Insolvent A director will be personally liable for breaching the rules and regulations of the organizations, based on the need to take potential action for recovering the debts. It is the legal duty as well as obligations of a director to act for companys benefit pertaining to the organizational objective. Directors are in turn responsible for administering the organization in support of the shareholders. According to the Corporations Act 2001 and common law, a director needs to uphold certain duties, which additionally considers limited liability of the corporate entity. Any breach of these duties can lead to legal consequences, which will in turn include civil along with criminal penalties, sanctions as well as directors disqualification for their post (Moroney, 2017, ASIC, 2016). Some of the potential liabilities of a director starts with delivering security or acting like a guarantor over assets of the shareholders in the company. Additionally, directors need to ensure that no trading take place, when the company has already become insolvent and determines the debts incurred. Moreover, a director is liable due to the losses caused by the breach of their duties. Besides phoenix activity also takes place in illegal terms, where transfer of assets to a new organization undertakes intentionally for saving tax and avoiding payment to creditors along with employee entitlements. Furthermore, a director is personally liable under ATOs Director Penalty Regime for withholding the amount of Superannuation Guarantee Charge (SGC) or Pay As You Go (PAYG), in case the company is unable to repay the amount. Hence, organizations ensure enough assets to pay off these debts (Moroney, 2017, ASIC, 2016). The Different Avenues Available to the Director Or Company if it presumes to be Insolvent There are three different avenues available for a director, if the company is presumed to be insolvent, which include voluntary administration, liquidation along with receivership. Voluntary administration is a process, where future direction of the company is resolved at a quicker pace. Here, voluntary administrator, an independent as well as suitably qualified individual work and control the entire company to save its business by making a way out. Here, the voluntary administrator further takes the responsibility to pay off the creditors in a better way. A director can also act as a voluntary administrator after obtaining a written consent from registered liquidator. The second option is liquidation, where a liquidator is appointed to control the insolvent company and work accordingly for the creditors benefit on fair basis. A director needs to call a meeting with the other member if they initiate the liquidation process. Here votes are considered for permanently winding up the com pany by the liquidator or taking the help of court for completing the process. The last option is receivership, where a secured creditor appoints a receiver to collect as well as sell assets of an organization to repay the owed debt (ASIC, 2014; ASIC, 2017a). This can be inferred from the topical issue of Value-stream Investment Management Ltd v Richmond Management Pty Ltd [2012] FCA 898 (Federal Court of Australia, 2012). Hence, a secure creditor needs to hold some security on few assets of the company to complete the process. A director can also be a secured creditor but requires seeking advice prior to the appointment of any receiver (ASIC, 2014; ASIC, 2017a). Difference between Voluntary and Involuntary Interventions Aligned with Organizations Potential Insolvency Company liquidation is the process that takes place when the organization is unable to pay off the dues to the creditors and saving it through voluntary administration becomes useless. The two process of liquidation has been differentiated below: Voluntary Liquidations Voluntary liquidation is considered essential, when companys business becomes completely insolvent and trading needs to be stopped. Here, the process is initiated by the directors along with company members to wind up by passing a required resolution as well as by getting a liquidator appointed. Additionally, the liquidator can be selected by the director and members in voluntary liquidation. The remaining assets of the company are sold and the fund recovered to pay off to the creditors by the liquidator as per the Corporations Act (CRS Insolvency Services, 2014; Australian Government, 2014). Involuntary Liquidations Involuntary liquidations start when a creditor, who owes money from the organization initiates an involuntary liquidation for its winding up and recovering the amount with the help of court. A statutory demand may be issued on behalf of the creditors by the district or local court in the first judgment session. Court may hence appoint an official liquidator for the process or a provisional one (CRS Insolvency Services, 2014; Australian Government, 2014).This can be regarded contingent based on the topical issue of Andrew Fielding as Liquidator of Lyngray Developments Pty Ltd v Dushas Anor [2012] QDC 96 (District Court of Queensland, 2012). Hereby, the creditor who initiated the process has all the rights to choose a liquidator during involuntary liquidation process to recover the funds (CRS Insolvency Services, 2014). Outcomes Other than Winding Up of a Company during Insolvency Instead of winding up, a company may look for alternative procedures such as voluntary administration as well as DOCA (Deed of Company Agreement) during insolvency, which may rescue them from the degrading situation and lead to positive outcome. Voluntary administration is conducted by an independent administrator, who is appointed to review the company affairs and rescue it from getting wound up (Taylor, 2017; Australian Government, 2014). This can be explained through the topical concern of Robinson, in the purview of Darrell Lea Chocolate Shops Pty Ltd (Administrators Appointed) [2012] FCA 833 (Federal Court of Australia, 2012a). Moreover, directors can appoint the administrators on behalf of the stakeholders along with creditor prior to their suspect of inability to pay off, who are directly supervised by the ASIC as well as the Court. During administration, the company is provided with a moratorium period before creditors enforce any action on the secured individuals along with the landlord. The procedure may take a maximum of one month, where business trading affairs will be investigated. At the end, a meeting will be convened with the creditors, where voluntary administrator will outline the existing affairs along viability of the company to continue operations. The options can be considered eligible in this situation including return in the authority to the directors, placing the company into liquidation or proposing DOCA to the creditors. DOCA is payment agreement by a third party or director on behalf of the company, where the key objective is to formally allow a restructuring process for the financial suffering company. DOCA in turn helps in binding all the unsecured creditors except personal agreements to pay-off a debt. If the company fails to restructure, they have to sign the DOCA as per the creditors orders. Hence, if company ignores to sign the DOCA, it will automatically fall into liquidation and the administrator will become a liquidator (Tay lor, 2017; Australian Government, 2014). The Statistics on Insolvency Regarding Australian Companies Australian companies insolvency statistics are measured by ASIC. In the present section, data from four quarters including September and December 2016 along with March and June 2017 is analyzed, whereby the quarterly total appointments were 2,299, 1817, 1717 and 2198 respectively. The EXAD or external administration remained below 4% in every quarter from July 2016 to June 2017 and the total appointments were recorded to be 8031, where average total was 2008 (ASIC, 2016a; ASIC, 2016b; ASIC, 2017b; ASIC, 2017c). Some of the statistical data related to these four quarters has been provided in the appendix section. Role of ASIC Along with Other Statutory Authorities Considering Insolvent Company ASIC is the regulator of corporate, financial as well as market services in Australia, which ensures transparency and fairness in the financial market, thereby maintaining economic reputation and well being of the nation. ASIC does its maximum of the work as per the prescribed norms in the Corporations Act 2001. Strategic priorities promote trust along with confidence amongst investors as well as financial consumers. Some of the key roles include improving and facilitating the financial systems performance, enforcing law, promoting information and confidence engagement of the consumers along with investors, thereby administering the corporate law in an effective manner and lastly building information considering the other statutory bodies and companies easily accessible to public. ASIC in general is a government body controlling the financial system in Australia, starting from a companys registration to its winding up along with liquidation (ASIC, 2017d). Conclusion The study clearly indicates the concepts of insolvency and several processes related to its functioning. It was hence evident that insolvency is effective due to the misuse of the financial system by the directors instead of the employees. Trading was hence suggested to be stopped as soon as company understands their insolvent position in the marketing. It was hence found that companies have alternatives rather than winding up their business, where they can appoint a voluntary administrator to recover from the situation. Here, the directors can save the company from liquidation and from getting completely wound up. Conclusively, it was found to be important for the directors to disclose everything to their investors, banks as well as shareholders, so that fairness could be displayed and collaborative effort could be provided to rescue the business along with its stakeholders. References ASIC, 2014, directors - what happens if company insolvent, Australian Securities Investment Commission, viewed 18 September 2017, https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/directors-what-happens-if-company-insolvent/. 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