Question

Concerning the classification of customers in the business market, General Motors is a(n) _________ when purchasing a mainframe computer system from IBM, but is a(n) ________ when purchasing tires from Goodyear.
a. user; original equipment manufacturer (OEM)
b. user; distributor
c. original equipment manufacturer (OEM); user
d. user; upstream supplier
e. original equipment manufacturer (OEM); downstream supplier

Answer 1

Answer:

a. user; original equipment manufacturer(OEM)

Explanation:

Business markets refer to purchase and sale of products by businesses with one another. For example, output for one business might be used as an input for another.

A business would be termed as a user when it purchases goods from another business, wherein such goods are not directly used in the manufacturing or creation of it's products.

Original Equipment manufacturer refers to a business which buys certain products and subsequently incorporates them in an altogether newer product  within it's brand name.