Observation

Most candidates who attempted the question could not properly differentiate these terms. They could not differentiate the terms on same basis.

The expected responses to the question include:

         Differences between the following pairs of terms

1. Merger and Acquisition

A merger is the coming together of two or more companies to form one entity, while an acquisition is the purchase of a company by another company, thereby   making the purchased firm lose its identity.

2. Holding company and Subsidiary company

A holding company is a parent company that acquires large proportion of share capital of other companies, while a subsidiary company is partly owned by another company.

3. Consortium and Cartel

A consortium refers to a group of companies who wish to take advantage of synergy to execute big contracts which they would not have been able to handle on individual basis, while a cartel is the coming together of producers of the same product with the aim of regulating prices and output.

4. Hire purchase and Credit sale

• In hire purchase, an initial deposit is required, while in credit sale, no deposit is required.

OR

• In hire purchase, the seller retains ownership of the product until final instalment is paid, while in credit sale, the buyer takes ownership immediately the agreement is made.

1. Credit note and Debit note

A credit note is a notification to the buyer to indicate an overcharge for a product sold, while a debit note indicates to the buyer an undercharge for a product bought.