An image is a snapshot of something. You can take an image of a single partition, a disk, or an entire system. Generally an image will not exclude anything within the scope of an image.
So to answer your question, yes, you can image a system and restore it to another computer - or multiple computers. Assuming the hardware is compatible, you can create as many clones as you want. This is a common practice in the IT world. Say you ordered 100 PC's. It's far easier to set up one machine with all the software, then image 99 machines all at once.
Does this method mean you don't have to purchase Windows to have a working machine with software? Yes. Windows will connect to Microsoft over the internet and see that key has been used (assuming g it's a retail key) and deactivate. Also, if you disconnect it from the internet it will eventually deactivate. However, you do t need to activate Windows to use it. You can run it perpetually in deactivated state. That is against the EULA though and if caught, that is a hefty fine. As for the software, they might also have call home functionality, which may disable them.
The term "backup" that has a very broad definition. A backup can simply be a file copy, individual bytes, clusters, sectors, partitions, entire disks, or disk images. Depending on the type of backup and the operating system you can create a fully functional system when restored. Take Windows for example. It's built in backup will backup up the files and the registry. Depending on the state of the machine it be restored and make a fully functional machine.
Is your question about backups or is it about windows licensing? Windows will immediately deactivate itself when restored to different hardware. – Appleoddity – 2018-09-26T04:40:07.933
As usual, make a system image still can be a way to backup your PC. – OOOO – 2018-09-26T04:55:30.310