Directions: In the question below are given a statement followed by two courses of action numbered I and II. A course of action is a step or administrative decision to be taken for improvement, follow-up or further action regarding the problem, policy, etc. Based on the information given in the statement to be true, then decide which of the suggested courses of action logically follow(s) for pursuing.

Statement :

Company B came into existence five years ago. It is a manufacturing company producing bottles. The turnover of the company for the first year was $550,000,000, it was running in loss of $220,000,000. In the second year, the company again faced a loss of $330,000,000. Even in the third year of its operations, the company has been unable to achieve a breakeven point. In the fourth year of its production, the company took a loan of $500,000,000 from a public bank to facilitate the day to day functioning. It was able to achieve the breakeven level of manufacturing. In the fifth year, yet again the company faced a loss. It no longer has funds to continue with its operations. What should the company’s next step be to completely get rid of this problem?

Course of Actions:

I. The Board of Directors of the company dissolves the company and pays off all its debtors.

II. The Board of Directors of the company sell off the company to a larger company and use the money to pay off their debts to the bank.