Question

Differentiate between ‘merger’ and ‘acquisition’ as forms of external expansion

Answer 1

Merger	Acquisition
A merger is a combination of two companies into one larger company.	An acquisition is taking control of a company, leading to its takeover. It could be an acquisition of tangible assets, intangible assets, rights and other kinds of obligations.
All the combining companies are dissolved and only the new entity continues to operate.	Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own