9 Difference Between Merger And Acquisition

1. A merger occurs when two separate entities combine forces to create a new, joint organization. 
2. When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition.
3. Formation of a new company
MERGER:
Yes
Acquisition: 
No
4. Purpose
MERGER:
To decrease competition and increase operational efficiency.
Acquisition: 
For Instantaneous growth
5. Mergers tend to mean job losses.
6. Legal Formalities
Merger:
More
Acquisition:
Less
7. Example of Merger:
American Automaker, Chrysler Corp. merged with German Automaker, Daimler Benz to form DaimlerChrysler.
8. An example of a major acquisition is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial Services Inc.
9. Size of Business
Merger:
Generally, the size of merging companies is more or less same.
Acquisition:
The size of the acquiring company will be more than the size of acquired company.

7 Difference Between Bank Guarantee And Letter Of Credit

1. Letters of credit ensure that a transaction proceeds as planned, while bank guarantees reduce the loss if the transaction doesn't go as planned.
2. LCs are frequently used in international transactions compared with bank guarantees.
3. bank guarantees are often used in real estate and infrastructure development to mitigate credit risks.
4. A bank guarantee is a commercial instrument guaranteeing by bank to a party (parties) on behalf of his customer, assuring the beneficiary to effect payment on default of obligation.
5. A letter of credit is written commitment document issued by a bank or other financial institutions to assure payment to seller on the basis of documentary proof on fulfillment of performance by seller as per terms and conditions mentioned in LC.
6. Risk
Letter Of Credit:
Less for merchant and more for bank.
Bank guarantees: 
More for merchant and less for bank.
7. Parties Involved
Letter Of Credit:
5 or more
Bank guarantees: 
3