Please let me know if this is the correct option.

1. Financial distress Bankruptcy is the process by which an entity can get a "fresh start" by canceling or significantly restructuring its existing debt through the order of a judicial body. Business failures can lead to bankruptcy for various reasons. Consider the following case: Universal Drapers Inc., a garment export company, was established in 2004. Over the past five years, the company has been financing its growth with debt and had 75% debt in its capital structure. The economic downturn had a drastic impact on Universal Drapers Inc.'s business, causing cash flows to decline, and the company could not make payments toward its debt. Universal Drapers decided to declare bankruptcy in early 2010. Based only on the information given in the case, what is the most likely cause of Universal Drapers Inc.'s failure? O Inability to service debt Loss of clients O Tax-related problems O Price wars with competition Suppose you are a part of the senior management of a company that is in financial distress. Which of the following issues would you focus on addressing immediately? Check all that apply. Identify whether the firm's inability to meet scheduled debt payments is a temporary cash flow problem or a permanent problem caused by asset values falling below debt obligations. Identify whether the firm's long-run assets have suffered economic losses; if they have, then identify who should bear the losses. Identify different strategies to increase revenues in the long run that will help service long-term debt. Estimate the worth of the business if it remains in operation versus if it were liquidated. Identify strategies for the modified distribution policy for the following year