What kind of image is obtained in a pinhole camera?

Hint: The image of a pinhole camera is formed on a screen (light sensitive film) inside the camera. At the pinhole the light rays from the object are considered to cross each other. The full image of even large objects can be produced at the film of the pinhole camera.

Complete step by step answer
Generally, a pinhole camera is a type of camera which does not use a lens but rather as a tiny aperture, called the pinhole. It is essentially a light proof box usually painted black to avoid light leakage.
Due to the lack of the usage of lens, the pinhole camera has a few advantages, and of course, disadvantages.

Some of the advantages are
1. It has no lens distortion. Due to the absence of lens, the pinhole camera does not create a distortion as in a lens camera.
2. Pinhole cameras allow almost everything to be in focus no matter how far. Unlike normal lens cameras which may not focus light coming from a close object, the pinhole camera focuses all (almost) objects.
One disadvantage is that for the pinhole to capture an image, the exposure time needs to be long. Hence, it blurs moving objects and does not even capture fast moving objects.
The pinhole camera produces an image which is real (projected on a screen), inverted and diminished (smaller than object).

Note
 For clarity, when we say a pinhole camera does not create a distortion, it means that other lens cameras have a slightly different focal point along its length, hence even all parallel rays focus on slightly different points depending on what part of the lens they get refracted from. The pinhole does not have such a problem.