Which of the Following Is Not Correct About the 12b-1

Which of the following is not correct about the 12b-1 fee?

A) It is also known as a distribution fee.
B) A no-load fund can charge a 12b-1 fee of up to 0.25% of its assets.
C) It is often an ongoing fee that is charged on an annual basis.
D) It needs to be disclosed in the annual report but not in the prospectus.
E) It is used to defray the costs of advertising and marketing a mutual fund and commissions paid to a broker who sold shares in the mutual fund.