IBDP Business Management Case Study Practice Test

How does using recycled plastic benefit ABC?

Increases brand risk due to lower quality. Reduces costs and environmental impacts. Slows production due to processing steps. Requires more capital expenditure with uncertain payback.

Correct Answer:

Reduces costs and environmental impacts.

Explanation:

Using recycled plastic often lowers material costs and reduces the environmental impact of production. The material can be cheaper than virgin plastic when sourced reliably, cutting raw material expenses. It also conserves resources and lowers waste and emissions associated with producing new plastic, supporting sustainability goals and potentially improving stakeholder perception. Other options describe potential downsides—quality risks, slower production from extra processing, or higher upfront capex with uncertain payback—that are not benefits, so they don’t fit the question’s focus.

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