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Question - Max is a prosperous businessman situated in a town, where he manufactures chili. During a recent visit to a friend's house in the city, he was taken aback by the unique range of chili products available at city supermarkets. His acquaintance informs him that city' is an extremely lucrative market for him to offer many types of chili, due to the high demand for chili products. Additionally, raw material suppliers have a flexible credit policy, and the time necessary to create Chili goods is very short. Max chose to enter this area of business by establishing a manufacturing facility in the city'.
Based on the above case answer the following questions:
a) Determine the nature of the preceding situation.
b) Outlined three elements indicated in the case study that is likely to have an effect on Max's working capital requirements.
During the month, the government paid the goods of which it withheld 5% VAT. How much is the VAT payable on the government sale
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