Question

Original equipment manufacturers or OEMs include all individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers. True or false?

Answer 1

False

Step-by-step explanation:

Original equipment manufacturers (OEMs) are entities that make parts and components used by other companies to produce final products. The OEMs outputs are inputs of another firm that produce final products, which are eventually sold to consumers. In other words, original equipment manufacturers do not sell directly to consumers.

Original equipment manufacturers sell to a second company that assembles the parts or add value to the components. Examples of OEMs include car parts manufacturers who make parts such as types, windscreens, and other components and selles them to car manufacturers. Others will include computer components producers.