1. some business operate on a low operating profit margin (for example, a supermarket chain). Does this mean that the return on capital employed from the business will also be low? 2. What potential problems arise for the external analyst from the use of balance sheet figures in the calculation of financial ratios? 3. Is it responsible to punish financial analyses of business that are in financial difficulties? What are the potential problems of doing this? 4. Identify and discuss the three reasons why the P/E ratios of two businesses operating within the same industry may differ