Amsterdam Ltd and Berlin Ltd are both engaged in retailing, but they seem to take a different approach to it according to the following information:

Required:
Describe what this information indicates about the differences in approach between the two businesses. If one of them prides itself on personal service and one of them on competitive prices, which do you think is which and why?

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Amsterdam Ltd Ratio Berlin Ltd Return on capital employed (ROCE) Return on ordinary shareholders' funds (ROSF) Average settlement period for trade receivables 20% 17% 30% 63 days 50 days 18% 21 days 45 days Gross profit margin Operating profit margin Average inventories turnover period 40% 15% 10% 10% 25 days 52 days