Difference between cancel and reject

[Guest]

Test No. incompl/advan-26 "Agreements", question 5

In view of the serious problems associated with the takeover the newspaper company has decided to ......... its offer of financial help.

(a) throw
(b) reject
(c) cancel
(d) deter

Test No. incompl/advan-26 "Agreements", answer 5

In view of the serious problems associated with the takeover the newspaper company has decided to cancel its offer of financial help.

Correct answer: (c) cancel

Your answer was: incorrect
In view of the serious problems associated with the takeover the newspaper company has decided to reject its offer of financial help.
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why here only "cancel"?

[Alan]

Here you need cancel because they (the newspaper company)are not continuing with the offer but reject doesn't work here because that would mean the other people are not continuing with the offer.
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