Which statement best reflects the benefit of adopting a circular model?

• A. Relying on a single source of supply.
• B. Creating new revenue streams.
• C. Increasing waste to drive disposal revenue.
• D. Avoiding CSR commitments.

Answer: (B)

The benefit being tested is how a circular model creates value beyond a one-time product sale by keeping materials and products in use and generating income from ongoing activities. Adopting a circular approach opens up new revenue streams through product-as-a-service, maintenance and repair, remanufacturing, selling refurbished items, and material recovery at end-of-life. This shifts the business away from a single transaction toward ongoing value and service-based income, which is why creating new revenue streams is the strongest fit. Relying on a single supply source increases risk, rather than providing a benefit. Increasing waste runs counter to circular aims, and avoiding CSR commitments clashes with the social and environmental goals often linked to circularity.