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ETA staff to avoid relocation costs and inconvenience on the part of the employees affected, they will however have to pay unemployment fees to ETA employees who will lose their job in addition to other benefits already owing to them from their former employer.

It should be noted that while merger and acquisition are two interrelated concepts, they nonetheless have different meanings. In merger, two firms, usually of the same size, agree to form a single company. In this case, both companies surrender their stocks and a new one is issued. There have been numerous company mergers such as the merger of Glaxo Wellcome and SmithKline Beecham where both firms ceased to exist as separate entities and a new company was created as a result of their merger, the GlaxoSmithKline.

Acquisition occurs when one company takes over another company, usually a competitor business. In this case, the acquiring company is the new owner and the acquired company is deemed absorbed by the acquiring one. In the legal sense, the acquired company ceases to exist because the buyer company becomes it new owner. Thus, no new stocks are issued because the stocks of the acquiring company is the one which continues to be traded.

In reality, acquisitions are more common than mergers. Although the action is referred to as merger of two companies in order to avoid the negative connotation associated with being bought out by one company. The merger of Chrysler and Daimler-Benz is an example of a company takeover but which is called as merger of two corporations. Treating the takeover as a merger is necessary to preserve the integrity of the company being bought and also in order to keep the existing clients.

In the case of Midwest Education and ETA, while the management refers to the action as a merger, what actually transpired was an acquisition by Midwest Education of ETA. As its founder Mr. Henry Dalton explained during the management retreat, 'the reason for the budget cuts was to raise enough capital to purchase Education Training Aids (ETA).' Furthermore, Lawrence Wilson also said that 'all ETA's staff are now Midwest Education employees.' This clearly shows that Midwest Education has bought ETA and as the new owner thereof, all of the latter's employees are absorbed by Midwest during the acquisition.

However, even though all of ETA staff became Midwest Education employees as a result of the acquisition, this did not automatically guarantee ETA staff positions in the Midwest Education because there are additional expenses which have to be dealt with first by Midwest Education before it can offer all ETA staff positions. Admittedly, relocating ETA staff is costly for Midwest. However, as pointed out by Jenny Lutz, ETA has several important clients from the East Coast which its staff have already handled. Thus, in terms of accommodating customers from the East Coast, ETA staff are more qualified than those in the Midwest Education.

However, when one takes into consideration the costs of relocating these employees, the company is also faced with the additional expenses. Thus, while ETA staff are admittedly more knowledgeable in handling East Coast clients, the costs entailed in their relocation presents greater incentive for the Midwest to hire new applicants in the Massachusetts instead. This is acceptable so long as the management is willing to pay the ETA staff who will be laid o