Is it correct that if c_move and c_rotate are used and both the FAT and NARROW flags are set, the bounding box will be used for the hull for collisions with any other entity and with any surface of the level?

Is is correct that one entity will collide with another only if any portion of the projection of the bounding box (or hull) of the moved entity intersects with any portion of the bounding box (or hull) of another entity, not just any area of the other entity's surface? In other words, is it the collision of bounding boxes with bounding boxes, or bounding boxes and hulls, or hulls with hulls that determines collisions between entities?

Thanks,