Respuesta :
The correct option is (B); companies that outsource all production to suppliers.
What are hollow corporations?
This serves as a model for a business that outsources the majority of its production work. "Virtual business" is a related American buzzword.
According to a business lexicon, it is a type of company where "essential aspects are outsourced to subcontractors."
The most significant benefits of this type of business strategy in the software and outsourcing industries are:
- Transfers of funds take place without converting currencies or including VAT (as in France). This indicates that no VAT can be used. Low logistics costs and (typically) cheaper taxes are the results of this.
- The third party that receives payments does all the required documentation and other tasks to ensure that payments are made on time.
- It is possible to send provisional bills, which give job/product/service clients a tax report for simpler planning.
- A different firm that bears all of the parent company's running costs gets compensated by the company.
To know more about the corporation, here
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