Fact Pattern 20-1

question 37

Multiple Choice

Fact Pattern 20-1
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 20-1.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.

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Definitions:

Primary Motivator

The main driving force that compels an individual to take action or behave in a certain way.

Humiliation

A feeling of shame or embarrassment typically resulting from being made to appear foolish or incompetent.

Control

The power to influence or direct people's behavior or the course of events.

Long-Term Organization

The process of planning and managing tasks or goals over an extended period.