Which term refers to a partnership between companies for a specific activity?

The term that refers to a partnership between companies for a specific activity is a joint venture. This arrangement allows two or more businesses to collaborate on a particular project or venture while maintaining their separate identities and operational independence.

Joint ventures typically involve sharing resources, expertise, and risks associated with the specific activity, which often leads to increased efficiency and innovation. Companies may choose to enter into a joint venture to access new markets, share costs, or leverage complementary strengths.

In contrast, collaboration generally implies a broader and less formal partnership without the legal framework characteristic of a joint venture. A franchise involves a business model where one party (the franchisor) grants another party (the franchisee) the right to operate a business using the franchisor's brand and business model, which is distinct from the partnership nature of a joint venture. A merger signifies a more permanent union of two companies into one entity, which goes beyond a specific activity to create a new organizational structure and shared governance. Thus, the joint venture is clearly the term that best encapsulates the idea of a partnership between companies for a focused purpose.