Contract manufacturing is a business process in which an organization known as ____________ outsources manufacturing to another organization.

Contract Manufacturer

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Original Equipment Manufacturer (OEM)

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Order Manager

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None of the above

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Solution

The correct option is B Original Equipment Manufacturer (OEM)
OEM (pronounced as separate letters) is short for original equipment manufacturer, which is a somewhat misleading term used to describe acompany that has a special relationship with computer and IT producers. OEMs are manufacturers who resell another company's product under their own name and branding.

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Similar questions

Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as

(a) Licensing

(b) Franchising

(d) Joint venture

Outsourcing

(a) restricts only to the contracting out of Information Technology.

(b) restricts only to the contracting out of non-core business.

(c) includes contracting out of manufacturing and R&D as service processes-both core and non-core-but restricts only to domestic territory

(d) includes off-shoring.

(a) Restricts only to the contracting out of Information Technology Enabled Services (ITES)

(b) Restricts only to the contracting out of non-core business processes

(c) Includes contracting out of manufacturing and R&D as well as service processes-both core and non-core-but restricts only to domestic territory

(d) Includes off-shoring

When two or more firms come together to create a new business entity that is legally separate and distinct from its parents is known as

(a) Contract manufacturing

(b) Franchising

(d) Licensing

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