Choice "C" is correct. Under Regulation D's rules 504, 505, and 506, sales may be made to both accredited and unaccredited investors, although under rules 505 and 506 the unaccredited investors may not number more than 35, and under rule 506 the unaccredited investors must also be sophisticated investors.
Choice "d" is incorrect. The 35 investor limit refers to the number of unaccredited investors under rules 505 and 506. There may be an unlimited number of investors under rule 504 of Regulation D and an unlimited number of accredited investors under rules 505 and 506 under Regulation D.
Choice "b" is incorrect. Under rule 505 under Regulation D there may be up to $5 million in sales. Sales under rule 506 are unlimited in amount.
Choice "a" is incorrect. Regulation D is for limited offerings, not small businesses.