What is the difference between a merger and an acquisition? Why would a company choose to merge instead of acquire? (7) (80 words max)

The major difference between the merger and acquisition is in merger two different business unit or companies come together and form and completely new unit under a new name where as in acquisition one business or one company acquires another business unit and the acquired unit loses its existence. Merger can be horizontal, vertical, reverse or conglomerate whereas acquisition can be hostile, friendly or a buyout. Most companies when they go for merger are because of the mutual understanding that by combining the business revenue and customer base can be improved and the economies of scale benefit can be achieved whereas acquisition is when one company thinks that by acquiring another company or business unit my business can increase the revenue base or the customer reach and acquisition can be hostile because of emotion attached with business of the founder where as merger is more a friendly approach towards consolidation.