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Shell companies, recently seen in the news, are:
corporations that do not have any purpose and are left to age.
corporations without any active business operations or assets.
corporations that are temporarily shut down during a recession.
corporations that are located in tax havens only
A shell corporation is a corporation without active business operations or significant assets. These types of corporations are not all necessarily illegal, but they are sometimes used illegitimately, such as to disguise business ownership from law enforcement or the public. Legitimate reasons for a shell corporation include such things as a startup using the business entity as a vehicle to raise funds, conduct a hostile takeover or to go public. Hence option (b) is the correct answer.
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