Financial Behaviour Part 3 (unpredictability of life & going concern)

As a human, although we have a life that can end anytime but still we plan for the foreseeable future. We plan our tasks, activities, goals and objectives despite the fact that we may not be able to live the very next moment of our life. This behaviour is inherent in human nature. Life is unpredictable and so is the future but we as human beings, optimistically, prolong our imagination into the foreseeable future.
The same principal is applied to the corporate personalities i.e. companies. Organizations are always at risk of being out of business for so many reasons like default on payments due, unable to settle its liabilities, huge losses, government regulations etc. Despite the presence of all the risk of survival to an organization, its accounts are prepared on the assumption of going concern. Going concern assumes that business will continue to operate in the foreseeable future.