The difference between a merger and an acquisition is: Select one: a. That a merger involves one company purchasing the assets of another company with cash, whereas an acquisition involves one company becoming the owner of another company by buying all of the shares of its common stock. b. That 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. c. That the brands of both companies are retained in a merger, whereas with an acquisition there is only one surviving brand name. d. Basically a play on words—in both instances, two companies become one, and the terms "merger" and "acquisition" are synonymous.