Question

The difference between a merger and an acquisition is

Answer 1

Answer:

A. a merger is the combining of two or more companies into a single corporate entity (with the newly created company often taking on a new name), whereas an acquisition is a combination in which one company, the acquirer, purchases and absorbs the operations of another, the acquired.

Explanation:

Definition:

A merger is said to occur when two separate entities combine forces to create a new, joint organization.

An acquisition is referred to the takeover of one entity by another.

Both Mergers and acquisitions may be completed to expand a company's reach or gain market share in an attempt to create shareholder value.