Fact Pattern 21-1 (Questions 11-12 Apply)

Fact Pattern 21-1 (Questions 11-12 apply)
Fresh Cream, Inc., wants to make an initial public offering of securi?ties. Fresh believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.
-Refer to Fact Pattern 21-1. Fresh decides to sell its new securities via the Internet. This offering

A) will avoid the payment of commissions to brokers or underwriters.
B) is an investment scam.
C) is a Ponzi scheme.
D) constitutes insider trading.