Shell Corporation

Posted in Finance, Accounting and Economics Terms, Total Reads: 288
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Definition: Shell Corporation

Shell Corporation is an organization which earlier had extensive operations but gradually has limited business operations or small assets. The reduction in business operations is due to unfavorable business conditions, fluctuating markets or mismanagement by the employees.


These companies are quite ambiguous. Means although they are not illegal they promote a lot of malpractices like tax avoidance, hiding money, etc.


Example

A fake company (Shell Company) is established by a dishonest employee to bill a company for goods or services it never receives

This represents about half of all fraudulent disbursement schemes.




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