Pick the correct statement from below. Multiple Choice 0 Bankruptcy occurs when total equity is negative. Bankruptcy 0 Bankruptcy is a legal proceeding. 0 Bankruptcy occurs when a company cannot meet its financial obligations. 0 Bankruptcy refers to a loss of value for debt holders. 0 Bankruptcy is an inexpensive means of reorganizing a company. Pick the correct statement from below. Multiple Choice The absolute priority rule determines when a firm must be declared officially bankrupt. C) The absolute priority rule determines how a distressed firm is reorganized. The absolute priority rule determines which judge is assigned to a particular bankruptcy case. The absolute priority rule determines how long a reorganized firm is allowed to remain under bankruptcy protection. The absolute priority rule determines which parties receive payment first in a bankruptcy proceeding