The correct answer is C. an off-balance-sheet, secret research facility engaged in questionable activities
Skunk Works is an innovative undertaking, it involves a small group of people who are outside the normal R&D channels within an organization. The term evolved when a secret R&D team was deputed at an Aircraft Corp for developing a jet fighter at a really fast pace for the United States during World War II. Hence, it can considered as secret research facility.
