Difference between merge and blend

[angie]

Test No. incompl/advan-9 "Finance (1)", question 8

The two companies have decided to ......... because they believe that their combined resources will produce greater profits.

(a) merge
(b) double
(c) mix
(d) blend

Test No. incompl/advan-9 "Finance (1)", answer 8

The two companies have decided to merge because they believe that their combined resources will produce greater profits.

Correct answer: (a) merge

Your answer was: incorrect
The two companies have decided to blend because they believe that their combined resources will produce greater profits.
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what is the menaing of merge in the sentence? and what is blend?
by the way, I like your test

[Torsten]

If two companies merge they unite to become one single corporation. For example, Mercedes-Benz and Chrysler merged into Daimler-Chrysler.
To blend means to combine or mix. For example, you can blend different types of tea or tobacco.
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