What term describes a new entity created by two organizations for joint efforts?

The term that describes a new entity created by two organizations for joint efforts is a joint venture. A joint venture involves two or more parties coming together to create a separate legal entity, which allows them to collaborate on specific projects or business endeavors while sharing resources, risks, and profits. This structure is particularly advantageous for businesses looking to combine expertise, enter new markets, or develop new products without fully integrating their operations.

In contrast, a merger refers to the combination of two companies into one, resulting in a single entity that absorbs the other, rather than maintaining separate identities. A partnership is more broadly defined and typically involves two or more parties agreeing to share management and profits of a business without forming a separate legal entity. An alliance is usually a less formal agreement between organizations to collaborate on certain projects or share knowledge without creating a new entity, making it distinct from a joint venture's structured approach.