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CMA Final · Entrepreneurship and Startup · Types of New Age Business

A Pune-based company, GreenLoop, collects used plastic from households, pays collectors per kilogram through a mobile app, cleans and shreds it, and sells the recycled granules to packaging manufacturers. Its main aim is to keep materials in use and eliminate waste instead of the take-make-dispose pattern. Which new age business type does GreenLoop best represent?

GreenLoop is a circular economy business, because it recovers used plastic, processes it and feeds it back to manufacturers as raw material. The focus is on keeping resources in use and cutting waste, unlike a sharing platform, which monetises access to underused assets.

  1. ASharing economy platform
  2. BCircular economy businessCorrect
  3. CSubscription-based e-commerce
  4. DFreemium software business

Explanation

GreenLoop recovers used material and returns it to the production cycle as recycled input, which is the essence of a circular economy business. A sharing economy platform instead lets multiple users access an underused asset, such as vehicles or rooms, and no such asset-sharing is described here.

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