Consider the Following Two Statements: (I) the Absolute Priority Rule

Consider the following two statements: (i) The absolute priority rule states that senior equity holders are paid in full before other claimants.
(ii) To rule out liquidation, management of a firm can favor a corporate bankruptcy.

A) (i) is correct and (ii) is incorrect.
B) (ii) is correct and (i) is incorrect.
C) Both (i) and (ii) are correct.
D) Both (i) and (ii) are incorrect.
E) Bankrupt firms cannot continue to do business.