(a) Differentiate between a merger and an acquisition
(b) Explain five ways commerce is important in the life of a nation
(a) Merger is the coming together or amalgamation of two or more firms to form one new company. By merging, the firm
will grow in size and maintain large scale production while an acquisition oocur when one company buys another
company and fold it into its operations. Sometimes the purchase is friendly and sometimes it is hostile, depending on
whether the company being acquired believes it is better off as an operating unit of a larger venture.
(b) - Employment opportunities: It offers employment opportunites to a large number of people such as a traders, bankers,
insurance brokers, etc.
- Raising of capital: It facitatess the raising of capital for individual needs and investment through the services of banks
and other financial institutions
- Exchange of Goods and services: It facilitates the exchange of goods and services through transportation and
telecommunication services
- Creation of Public Awareness: It makes the public awaren of the availability of goods and services through
advertising
- Creation of wealth for Nations: Commerce helps to create wealth for nations, as duties are charged on goods and
services either exported or imported.
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