What is the term for a special business arrangement when two or more companies join for a specific project?

A joint venture is a business arrangement in which two or more companies collaborate on a specific project, sharing resources, expertise, and risks. This partnership is typically limited in scope and duration, focusing on achieving a specific objective that aligns with the goals of the participating companies. In a joint venture, each company retains its separate legal status while working together towards a common goal.

This structure allows businesses to leverage each other's strengths, reduce the financial burden associated with a new project, and enter new markets or develop new products more effectively than they might individually. By pooling their resources, the companies involved can also benefit from a unique combination of abilities and knowledge that spearheads innovation and efficiency for the project at hand.

Other options such as partnerships involve a broader, ongoing business relationship, while franchises are about licensing a business model, and mergers entail the combination of two companies into one entity. These distinctions clarify why joint venture is the most suitable term for a specialized, collaborative effort in a defined context.