Question: Which statement is true? Multiple Choice The absolute priority rule must be strictly followed in all bankruptcy proceedings. Creditors cannot force a firm into bankruptcy

Which statement is true?
Multiple Choice
The absolute priority rule must be strictly followed in all bankruptcy proceedings.
Creditors cannot force a firm into bankruptcy even though they might like to do so.
A reorganization plan can be approved only if the firm's creditors all agree with the plan.
A prepack is a plan of liquidation used to distribute a firm's assets.
Bankruptcy courts have "cram-down" powers.

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