Which term describes a business model where two or more parties collaborate on a shared project?

The term that best describes a business model where two or more parties collaborate on a shared project is "Joint Venture." This arrangement is characterized by the collaboration of multiple parties who agree to pool their resources and share risks in order to achieve a specific project or business goal. Each party typically maintains its separate legal status while contributing to the joint endeavor and sharing profits, losses, and control as stipulated by their agreement.

In a joint venture, the parties collaborate for a limited time frame and for a specific project, making it distinct from other business models. This collaborative arrangement allows for leveraging the unique strengths and resources of the involved parties, which can lead to enhanced innovation, efficiency, and market reach.

Franchising involves one party allowing another to use its trademark and business model but does not inherently involve the level of collaboration found in joint ventures. A sole proprietorship represents a single individual owning and operating a business without partners, while a partnership entails a more enduring business relationship between two or more individuals with shared responsibilities, rather than a specific project-based collaboration.